Coronavirus, also known as COVID-19, has been declared a public health emergency of international concern by the World Health Organization and most firms are not prepared for the potential prolonged impacts on staff welfare, operations, supply chains and the broader economy arising from a globally-spreading infectious disease.
Organizations should carefully plan their response to the coronavirus to ensure they are prepared for the potential impact of the outbreak. Planning ahead rather than acting reactively will speed up recovery, cut response and reduce strain on senior management time.
We can assist your organization with developing claim management protocols
As your trusted resource and partner for Commercial Insurance and Risk Management, We can assist your organization with developing claim management protocols that establish clear roles and responsibilities for personnel inside and outside the organization.
or call 1-800-661-1518
A four-step action plan is recommended to manage the impact of the disease:
Companies should put staff first, supporting them through a pandemic event during which they might fall ill, need to care for sick family members or be anxious due to safety concerns.
Crisis behaviour can impact a firm’s reputation
Planning for any absences will be important. Travel policies may need to be adjusted as the pandemic spreads and official travel advice should be followed for staff. The potential risks related to visitors from infected areas should also be considered.
Supply chain vulnerabilities should be managed carefully as they may be disrupted with delays and create cost increases for inputs or services, either through suppliers directly or as a response to travel restrictions or scarcity of in-demand goods.
It is important to remember how an organization behaves during a crisis can impact its reputation in the long run, with a poor response potentially damaging the trust of staff, customers and other stakeholders.
A poorly handled crisis results in an average and sustained drop in share performance of 12%.
Insurance coverage is another important thing companies should consider. Companies should understand what coverage they have in case of an outbreak and how it will work for responding to a pandemic. Some property and business interruption policies include specific time element coverage for infectious disease and without such language, coverage is unlikely to be triggered.
For example, coverage would not be triggered simply by a fear that a communicable disease may be present in or near the insured’s property, thereby leading to employee absences or diminished customer traffic.
Coverage may be provided-if an insured has been extended policy for notifiable disease, communicable disease or outbreak provision/extensions.
Property contracts generally require physical loss or damage triggers by an insured peril, either to the insured’s property or to property that precludes entry rights to the insured’s property.
If an insured believes it may have sustained an insured loss resulting from an occurrence of a notifiable disease, it should immediately begin the process of gathering documentation to support a potential claim.
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We can assist your organization in developing claim management protocols that establish clear roles and responsibilities for personnel inside and outside the organization.
For more information or to speak with one of our associates, call 1-800-661-1518 or fill out the contact form below: