The rapidly evolving circumstances surrounding the Coronavirus (COVID-19) has negatively impacted many individuals, families and businesses. eMaxx is committed to supporting our valued partners throughout this difficult time period.
At eMaxx, we have implemented the proper steps to protect our employees and ensure that we can provide the same level of service to our customers. Employees have been advised to work remotely for the foreseeable future to comply with the federal, state, and local officials recommendations along with guidance from the Centers for Disease Control (CDC) and World Health Organization (WHO).
We wanted to share with you some information and resources that could potentially help you and your employees during this time period.
Coronavirus Aid, Relief and Economic Security Act (CARES Act)
On March 25, 2020, the Senate voted unanimously to advance Phase Three of a congressional response to the COVID-19 emergency and the House of Representative is preparing to vote for the economic relief package today. Steptoe & Johnson has provided a comprehensive overview of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
A number of states including New Jersey, Massachusetts and Ohio have proposed legislation to require insurance companies to provide coverage. In addition, the White House and Congressional leaders have met with insurance industry representatives to address business interruption coverage issues.Recommended Approach
eMaxx Assurance Group of Companies and eRisk Solutions have been receiving inquiries regarding Business Interruption coverage as a result of the impact of COVID-19. It is anticipated that insurance companies can react in the following ways.
- Agree to trigger coverage that the property damage has resulted or would have resulted.
- Agree to provide coverage as part of an overall federal backstop for Business Interruption loss that has resulted from COVID-19.
- Deny and claim that there is no trigger for coverage under the insuring agreement and or rely on certain exclusions that could exist in your policy.
In addition, crises related coverage may be provided in excess liability policies. Coverage is generally for an array of costs along with expenses associated with a crisis, which is generally defined very broadly and exclusions could apply similar to other policies. It is important to contact your insurance agent and broker immediately as these polices commonly have a short reporting period. Costs associated with crisis management can include securing a site, providing medical services to victims to mitigate injuries, consulting public relations costs and other services. Claimants should consider sending the following course of action.
Notify your broker or insurance company immediately. Some policies have short reporting periods – a delay could jeopardize your coverage. Some suggested language for claim notification:
Please accept this formal notification that our company is filing a claim for business interruption and extra expense coverage as a result of a civil order and direct physical injury to property that has resulted or could have resulted from COVID-19 and/or the government mandated closure of our operations. In addition, we are claiming coverage for any Crises Coverage available through excess policies or elsewhere. We will be filing a complete proof of loss when appropriate. In the meantime, we will file a partial proof of loss as to our ordinary payroll, fringe benefits, operating expenses, and some extra expenses in order to obtain a partial advance payment.
Please immediately provide the name of the adjuster assigned to our claim as well as their contact information and the claim number.
eMaxx Loss Preparation
Most insurance policies include Extra Expense coverage for the preparation by an independent company of the Proof of Loss and filing of the claim with your insurance company. It is recommended that you retain an outside firm to assist you in preparing your proof of loss. The International Risk Management Institute has provided a perspective on the burdens of filing a proof of loss. Every Proof of Loss needs to be tailored to your business, COVID-19 and the coverage provided under your insurance policy.
eRisk Solutions can review your information and coverage, assist you to determine required information, and prepare initial proof of loss to apply for advanced payment.
Loss Prevention and Safety Offerings
- Virtual Loss Prevention and Safety Training: Our eRisk Solutions staff are able to provide the same quality of service through interactive training including DOT audits for your company and employees.
- eLive Connect Online Training: Available 24/7 365 with interactive training, videos, tailgate meetings, podcasts and more. eLive Connect also includes a Learning Management System component that provides education and testing on various topics.
- Weekly Webinars: eMaxx offers weekly webinars that covers topics including safety, loss prevention and technology.