It’s tough keeping a business afloat when a pandemic is raging all over the world.
Because of COVID-19, countless small businesses have already shut down, although some have managed to stay open despite it.
There are a number of reasons a small business can continue operating—or readily resume operations after closing down for a while—amid a global pandemic. It’s possible that having the right business insurance coverage is what’s keeping them going.
From business interruption coverage to contractors insurance, here are some insurance policies that could help protect small businesses from the effects of a global pandemic.
Business Interruption Insurance
When an entrepreneur buys a business owners insurance policy, business interruption coverage typically comes with it.
Designed to protect a business from the effects of a covered peril that disrupts its operations, business interruption insurance helps policyholders recover from the resulting economic impact, from lost revenues to relocation costs.
However, it’s important to know that many insurers exclude epidemics and infectious diseases from their list of covered perils, typically limited to physical damage or loss to the business property caused by fire, lightning, wind, falling objects, or theft.
Check your policy or talk to your agent to find out if these exclusions are present.
There is also an effort by the government to make available insurance coverage for business interruption losses due to viral pandemics, among other things, so keep an eye on it for developments.
Commercial General Liability Insurance
One of the risks that come with running a business is that anyone, from your employees to customers, can sue you if they get hurt within your business premises.
In a country where just about anyone can sue anybody for anything, it pays to be ready for such occurrences.
In case somebody claims they got COVID-19 as a direct result of your failure to implement recommended safety precautions in the workplace or your place of business, your commercial general liability coverage should help you cover not only the legal costs of such claims but also any resulting settlements or awards by the court.
Worker’s Compensation
In a pandemic, just about anyone is at risk of getting sick. Your employees are pretty much exposed, too, whether they’re in the workplace or outside of it.
If you have worker’s compensation insurance coverage, and any of your employees get infected with the coronavirus that causes COVID-19, they could receive compensation that will pay for their medical bills and the wages they lost while recovering from the disease.
However, to be entitled to such benefits, workers will need to prove that they contracted the disease in the workplace or while performing work-related tasks in the field.
The insurance policies mentioned above can prove to be handy during a pandemic. Then again, it would also be great for a small business to have them still even when the COVID-19 crisis is finally over. After all, your business is a product of hard work, and it deserves all the protection it can get.
