Since beginning in China in late December 2019, coronavirus COVID-19 has since spread to a growing list of countries, including the Unite States.
It is important to note that while the full scope of COVID-19’s impact across the country has yet to be determined, commercial lines carriers may be exposed to a liability loss if their insureds’ clients were to contract the virus while at associated health and business facilities.
To help protect you and your business insureds, The National Law Review has embarked on a three-part series examining factors to consider as the COVID-19 outbreak continues.
In the first installment, it is advised for Business Interruption and Specialized Business Interruption policies to be reviewed to determine the following:
- If they are sufficient
- What new exposures and risks are present given the unique nature of the coronavirus
- Which current policyholders are likely impacted most
- The size, scope and nature of earlier claims and what they may indicate
- The process to triage claims to ensure they are handled in the best interest of all stakeholders.
COVID-19 Background
On December 31, 2019, several cases of an unusual pneumonia were reported in the port city of Wuhan, China. The source of infection was traced back to the city’s Huanan Seafood Wholesale Market, which was then shut down on January 1.
On January 7, officials announced that a new strain belonging to the coronavirus family had been identified (since labeled COVID-19). Other viruses within this classification range from Severe Acute Respiratory Syndrome (SARS) to the common cold. Associated COVID-19 symptoms include fever, difficulty breathing, impaired liver/kidney function and severe cough. The virus is thought to spread primarily through person-to-person contact (within about six feet), including by way of respiratory droplets produced through a cough or sneeze.
On January 30, the World Health Organization (WHO) declared the virus a global emergency after infections began to be documented outside of China (initially in India and the Philippines).
Currently, the WHO is reporting that 83,694 confirmed cases have been documented in 53 countries.
U.S. Impact
According to The New England Journal of Medicine, the first confirmed case of COVID-19 in the United States was reported on January 20 in Snohomish County, Wash. Since that date, 60 citizens have been confirmed to have the virus, with 42 resulting from a cruise ship placed under quarantine in Japanese waters on February 3.
On February 27, media outlets reported that the first case of “community spread” (unknown origin) is being investigated by health officials in California. The patient, who is a resident of Solano County, has had no known exposure to the virus through travel or close contact with a known infected person, according to the California Department of Public Health.
During a White House press conference on February 26, President Donald Trump announced that at this time, no additional restrictions to enter the country will be imposed (aside from a January 31 order to deny entry to foreign nationals who have traveled to China). He also confirmed that plans have been made for quarantining cities if needed.
Confirmed U.S. Cases (62)
– 42 former passengers of the Diamond Princess cruise ship (Japan)
– 3 repatriated from Wuhan, China
– 15 domestic
U.S. Domestic Cases
*Not including repatriated cases/cruise ship evacuees
Arizona
– Maricopa County: 1
California
– Humbold County: 1
– Orange County: 2
– Sacramento County: 1
– Santa Benito County: 2
– Santa Clarita County: 2
– Solano County: 1
Illinois
– Chicago: 2
Massachusetts
– Boston: 1
Washington (State)
– Snohomish: 1
Wisconsin
– Madison County: 1
Source: Worldometer
Media Coverage:
ABC News: Coronavirus has ‘pandemic potential’, WHO warns as US ramps up testing
CNN: California patient with unknown origin of coronavirus is in serious condition, official says
NBC News: Coronavirus Updates
Additional Resources:
Centers for Disease Control and Prevention (CDC): Coronavirus Disease 2019 (COVID-19)
World Health Organization (WHO): Novel Coronavirus (COVID-19) Situation (Statistics)