Shawn Kraatz is the first vice president of Alliant Insurance in Newport Beach, California, where he oversees property and casualty coverage. Actively following developments in the worldwide insurance industry, Shawn Kraatz is aware of the impact that the COVID-19 pandemic has had on business interruption claims in nations such as Great Britain.
Reports from the Association of British Insurers (ABI) and the GlobalData research firm indicate that pandemic-related closings have strained the resources of insurance providers. Business interruption claims are expected to comprise three-quarters of all claim types in 2020 alone, as companies seek help paying taxes, debts, and payrolls.
Unfortunately, most business interruption policies do not cover losses due to infectious diseases, and those that do typically only apply to known maladies rather than emerging threats. Only a small number of policies cover newly discovered illnesses. Furthermore, coverage is often valid only when a disease is physically present at the business’ location, but not for the effects of customers staying away out of caution.
Faced with this situation, the ABI supports members’ efforts to provide claims services. It urges insurance firms to use claims representatives familiar with the industry to enable rapid payouts. Cash-tight policyholders will receive partial, immediate payments. Finally, ABI members are expected to provide clear information about complex claims processes.
Reports from the Association of British Insurers (ABI) and the GlobalData research firm indicate that pandemic-related closings have strained the resources of insurance providers. Business interruption claims are expected to comprise three-quarters of all claim types in 2020 alone, as companies seek help paying taxes, debts, and payrolls.
Unfortunately, most business interruption policies do not cover losses due to infectious diseases, and those that do typically only apply to known maladies rather than emerging threats. Only a small number of policies cover newly discovered illnesses. Furthermore, coverage is often valid only when a disease is physically present at the business’ location, but not for the effects of customers staying away out of caution.
Faced with this situation, the ABI supports members’ efforts to provide claims services. It urges insurance firms to use claims representatives familiar with the industry to enable rapid payouts. Cash-tight policyholders will receive partial, immediate payments. Finally, ABI members are expected to provide clear information about complex claims processes.
