Since the onset of the Covid-19 Virus and the resulting changes, many of our businesses have been forced to change how they operate, and many questions have come up.
Some of the insurance coverage questions to me have been about delivery services by employees using their own cars.
Many policies I write have an endorsement for Hired Borrowed and Non Owned Auto. This usually means that if a business sends an employee on an errand like to the grocery store or some other place on an occasional basis, the business Liability Coverage will cover an accident if the employee is Liable.
Under the current conditions, many businesses are adding delivery service of food or products that they normally would not do. Most of my carriers are ok with this new business reality. The insured must understand delivery is a temporary service that will end when the travel and work restrictions end.
If your current policy will not allow this, some companies will write Hired Borrowed and Non Owned Auto on a short term basis.
Not all Carriers are the same so check with your agent about coverage for temporary delivery service.
The other question I get is about Business Income and Extra Expense Coverage. This typically covers any extra expense and loss of income sustained caused by a covered loss.
As an example, think of your family dentist office. If the office floods or has a fire, your dentist would need to rent other office space and all of the equipment needed to conduct his normal business as well as pay his staff during the time it takes to get the new location set up. Business Income and Extra Expense Coverage would cover all of these “extra expenses” and lost income during that time.
The key phrase being “a Covered Loss”. Covid-19 is not a covered loss. So, at the time I am writing this there would be no coverage under this circumstance.
There has been some talk of the Federal Government reimbursing insurance carriers if they allow payment for lost income and extra expense sustained by businesses. This has not been passed by Congress or signed by the President. But that could change in the future. So check with your agent.