It is still unclear whether employers will be held liable for workers’ compensation claims associated with COVID-19.
At the same time, supply chain issues are already threatening business interruption. Find out what you can do to prepare right now for tomorrow’s unknown.
It is no longer if COVID-19 will become a business issue, but how to prevent it from becoming a significant one, and which aspects of an organization will be most affected. From worker’s compensation claims to supply chain interruption, businesses have more questions than there are answers. Here, we attempt to answer some.
When is COVID-19 a worker’s compensation claim?
Generally, when an employee catches the flu from someone at work, it is not covered under Workers Compensation insurance. Those claims have been found not to be compensable and were denied. However, in the case of COVID-19, the answer is not very clear.
Instead, if an employee tests positive for COVID-19---regardless of how they caught the virus---and/or if an employee causes the virus to spread among your staff or patients, your organization needs to file a worker’s compensation (WC) claim on behalf of all infected workers.
In order for the claim to be covered, the employee(s) will need to prove that he/she was not only infected with the virus via another employee, but the only way they were exposed COVID-19 was through that contact. It cannot be assumed that the insurance company will pay out WC benefits for COVID-19 exposure.
There will be an investigation, and employers who have taken steps to limit the exposure to their employees will be working with their insurance company to determine if a claim is compensable. The contraction has to be within the “course and scope of employment."
WC policies typically provide benefits for lost time, permanent disability, medical expenses and even death benefits when an injury is found to be caused by a work exposure. Reach out to your broker today to review your WC policy details ahead of any issues to determine the best course of action should residents or employees begin to show symptoms or claim they may have been exposed to the virus at work.
Are business interruption/supply chain issues due to COVID-19 covered?
The latest---and for many businesses, the most significant---fallout to the coronavirus pandemic is the business interruption it’s causing. For many senior facility owners and operators, the epidemic has affected their supply chain, i.e., organizations can no longer ship or receive products necessary to their work, or it has caused other significant personnel or materials delays.
A variety of issues related to coronavirus can cause business issues, from the inability to source materials necessary for your business to a shortage of critical care supplies or even remote working complications. Unfortunately, Business interruption (BI) policies don’t cover pandemics. Instead, they require a physical trigger like a degree of damage to the insured’s property for coverage to kick in.