Desmond Insurance Blog
With the coronavirus still spreading worldwide, the virus forces businesses to shut down due to financial losses. For the construction industry, this burden is projected to increase further due to project delays, cost overruns, and suspension of services.
Infected Workers are Inevitable
When the construction site is within an area where the virus is present, it is likely to have infected employees. These workers are then forced to undergo quarantine, which means they would be out of work for weeks. Operations are likely to be put to a halt when there is a substantial lack of workforce, resulting in production delays and added expenses.
Some insurances could cover the expenses brought upon by infected employees. General Liability-Bodily Injury provides coverage when the injury is due to contact with the virus within the workplace. Worker’s compensation might provide financial relief if the employee obtained the virus at a work-related event.
The Pandemic May Cause Unexpected Expenses
Amidst the outbreak, business owners were required to have their workplaces disinfected and provide their employees with personal protective equipment. The added expense to operate may become a financial burden in the future as this was unexpected.
Insurance may also provide the needed coverage for these cases. Property Loss policies may provide if there is an absence of virus exclusion in the clause. Environmental or Pollution Losses may cover some of the expenses depending on the wording of the policy.
Services May be Unavailable Causing Delays in Production
With travel restrictions implemented, the procurement of materials has been complicated. Shipping companies generally have no access to areas where the virus is present. If the materials needed for production are in those areas, delays in production are to be expected.
Since the production is disrupted, Business Interruption Insurance may cover some of the losses entailed. The coverage may be redeemed, together with Property Loss, provided that the workplace is indeed contaminated with the virus.
There are various insurances that contractors may obtain to minimize the financial burden. It is essential to review each insurance policy. The language in these policies is critical to determine whether the economic losses due to the virus will be covered.
At Desmond Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (859) 491-5100 or Click Here to request a free quote.