Author: Attorney John Mitby
With the current worldwide pandemic, it is a good time to check your commercial insurance policy and any recent amendments. Most likely you do not have virus coverage for liability claims. Many recent amendments clearly state modification to your insurance and it now eliminates any insurance coverage by EXCLUSION – INFECTIOUS OR COMMUNICABLE DISEASE.
The legal impact is that under a lease or contract with indemnification for other party’s claims one could pick up liability for their employees or customers yet you would have no insurance. Especially with employees suing employers for virus claims on the basis that employer is not following virus protocol and the worker compensation carrier denying claims on grounds one cannot prove you got the virus at work there is exposure civil suit.
Now is the time to check and review your contracts and legal documents, and in some cases may wish to consider claims waiver (Wis. Courts) have not addressed the virus waiver issue).
There are laws in 16 states that provide for exclusion from liability for virus claims. Plus Wis. legislature has a bill on exclusion from liability it is considering. You should check with your legislature in the status or such bill.
One claim can be very expensive.
Exclusion attachment below: