COVID-19 and Insurance: The Impact of Policy Language

The word “unprecedented” has infiltrated nearly every conversation I’ve had over the last few weeks as the COVID-19 pandemic slowly shuts down the United States.

As stay-at-home orders are issued and businesses closed, national attention has turned to insurance for a lifeline.

Millions of businesses across the nation are struggling to make ends meet, many facing significantly reduced or eliminated revenue streams.

Will Business Interruption insurance fill the gaps created by the shutdowns?

In this episode of The Insurance Nerdery, we talk through the impact of policy language and an ISO form from 2006 that is getting a lot of attention in the media today.

About Amber Wuollet

Amber is a people-focused creative type who is energized by challenge, fueled by coffee, and fascinated by the power of data and innovation to reshape the world. She spend her days surrounded by data scientists and product leaders who see opportunity in each problem and solutions to each question. She's the co-host of The Insurance Nerdery video blog by Insurance Nerds.

1 thought on “COVID-19 and Insurance: The Impact of Policy Language”

  1. On the CP 10 30 10 12 Causes of loss-Special Form, A. Covered causes of loss, states; ” When Special is shown in the Declarations. Covered Causes of Loss means direct physical loss unless the loss is excluded or limited in this policy. So literally, per the policy, a covered cause of loss is a direct physical loss. This is common language for Special causes of loss forms. But here is a different wording I found “when Special is shown in the Declarations, Covered Causes of Loss means RISK OF DIRECT PHYSICAL LOSS unless the loss is 1. Excluded in section B., Exclusions; or 2. Limited in section C., Limitations. RISK OF… is capitalized in the policy form, but not defined. Does “Means” imply a definition of Direct physical loss?


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