Business shaped by a Pandemic

As we have experienced, COVID-19 has had wide and far-reaching consequences that have changed how we live our day to day lives. Furthermore, it has changed the landscape of many businesses and industries.

In this article, we explore the ramifications of the impact of COVID-19 and the subsequent changes to policy form (through limitations and exclusions) introduced within the Healthcare insurance and indemnity marketplace as a result.

The different types of COVID-19 exclusions

Sadly, there isn’t a common consensus that all healthcare insurance markets are currently following. Instead, contrasting measures are being introduced that vary in the limitations imposed by the insurers.

These can be broadly categorized (but not limited) to:

  1. COVID-19 Limitation
  2. COVID-19 – Exclusions.
  3. Pandemic Exclusions.
  4. Communicable Disease Exclusions.

COVID-19 Limitations

Limitations are largely variable and are intended to prohibit smaller areas of concern to an insurer that can arise through COVID-19 related exposures. Examples of this can be regarding vicarious liability, misconduct, transmission, retroactive dates, etc.

It’s important to mention that most limitations are intended to continue coverage for the treatment of COVID-19.

COVID-19 – Exclusions

Exclusions are broader than limitations and commonly extend to all coverage sections and aspects, including subsections and extensions of cover within the policy. 

The implication of exclusions means that treatment of COVID-19 patients is normally entirely excluded from the coverage.

Pandemic Exclusions

Pandemic exclusions may not reference COVID-19 specifically (may be inserted into the policy) but broadly exclude Pandemics as a whole. Commonly, Pandemic exclusions extend to all coverage sections within a policy.

The language used by the insurer is crucial here as the wordings normally reference the extent of and provides a definition of what a pandemic is.

Under normal circumstances for a pandemic exclusion to apply, it must be declared as at least one of the following:

  • Public health emergency of national or international concern.
  • Epidemic
  • Pandemic.

The triggering mechanism of the exclusion stipulates to:

  • Announcement from an official body or government.
  • Date of deceleration of the Public health emergency is the date when the exclusion triggers.

Communicable Disease Exclusions

Communicable Disease Exclusions are even broader than pandemic exclusions (and are often absolute exclusions) and include a wide array of diseases (that are not required to be defined or declared by an official body or government).

How can we help?

Any limitations or exclusion can have a major impact on how a healthcare policy triggers. Therefore, each policy must be reviewed in detail to establish the extent (if any) of coverage for COVID-19 and how any limitations and exclusions can alter the policies triggering mechanism. At Servca, we work alongside the largest Healthcare insurers in the world to ensure that the coverage you receive allows you to continue working without any gaps in cover.

We take time, and care in detailing elements of the policy and things that you need to be aware about, prior to taking out a policy. As an independent Lloyd’s broker, we take time and care to detail elements of the policy, and things you need to be aware of before taking out a policy.

If you are concerned about your current policy, we provide free silent reviews on policies and wordings to highlight any exposures that you may face.

For more information contact:

Dr Edwin Rajadurai (MBBS) – Servca Managing Director

T: 0747 424 6616

E: erajadurai@servca.com 

Please note that the information in this article is not intended to be used or relied upon as a replacement for legal or professional advice. Please make appropriate arrangements to check your policies thoroughly with your professional or legal representatives.