03/23/2020
A Message from Richard Bagby, Managing Member of Insurance Partners
We want to assure our customers that as we all struggle to adjust to the daily challenges of dealing with the COVID-19 virus, we have taken steps to ensure that we will be there when you need us. For the safety and well-being of our employees and clients, last week we implemented emergency procedures that allow our staff to operate remotely with all our normal capabilities. We are fully operational and ready to assist you with servicing your insurance needs, including any claims or claim-related questions you may have. We can be reached during normal business hours through email or telephone.
In the interest of providing Marylanders with information on potential Business InterruptionCOVID-19 virus related claims, the Maryland Insurance Commissioner issued a statement (see the link below) addressing the standard interpretation of coverage for Business Interruption losses. They also want Marylanders to know that they are vigilantly monitoring the actions of carriers doing business in Maryland to ensure that their policy interpretations fairly and accurately conform to their policy provisions for coverage.
Be safe, stay healthy and let us know if we can be of help!
Richard H. Bagby
https://insurance.maryland.gov/Pages/newscenter/NewsDetails.aspx?NR=2020256
Maryland Insurance Administration Advisory on Business Interruption Insurance
BALTIMORE – The Maryland Insurance Administration is receiving a high volume of inquiries about Business Interruption insurance.
Business Interruption coverage is typically triggered under a commercial insurance policy when a covered risk / peril causes physical damage to the insured premises resulting in the need to shut down business operations. For example, if a fire damages a business and the business cannot operate during repairs, business interruption coverage would be available subject to the terms and limits in the policy.
Most policies require a waiting period of 24 to 72 hours before coverage begins and coverage continues for the reasonable period of time to restore the property and reopen, subject to the coverage limit of liability. Some commercial policies provide Business Interruption coverage when a business is shut down due to an Order by a civil authority. However, the policy still typically requires a physical loss from a covered peril as the underlying cause of the business shut down to apply.
All insurance policies have exclusions of coverage for risks that are too great to be underwritten at an affordable price. For example, commercial and personal property insurance policies typically contain specific exclusions for loss or damage caused by war, nuclear action and radiation. The potential loss costs from such perils are so extreme that providing coverage would jeopardize the financial solvency of property insurers. Global pandemics like COVID-19 usually fall into this category. However, policies can be different. We recommend that businesses review their policies and reach out to their insurance professionals with any questions.
The Maryland Insurance Administration would like to reassure Maryland businesses that we are closely monitoring insurance issues related to COVID-19. Our core mission is making sure insurance companies treat customers fairly and follow the provisions in their policy and applicable state laws. We are monitoring relief activity efforts aimed at assisting individuals and businesses at the local, state and federal levels. As information regarding relief programs becomes available, it will be posted on our website: www.insurance.maryland.gov.
About the Maryland Insurance Administration
The Maryland Insurance Administration is an independent State agency charged with regulating Maryland’s $28.5 billion insurance industry. For more information about the Insurance Administration, please visit www.insurance.maryland.gov or follow us on Facebook at www.facebook.com/MDInsuranceAdmin, Twitter at , LinkedIn at www.linkedin.com/company/maryland-insurance-administration or Instagram at .
BALTIMORE – The Maryland Insurance Administration is receiving a high volume of inquiries about Business Interruption insurance.
