Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Your Insurance Checklist for Coronavirus Losses
Cooley | March 13, 2020
With the constantly changing landscape and the obvious need for us all to prioritize the health and well-being of our employees, clients and business partners, it can be difficult to focus on the next steps business insurance needs to protect themselves.
Cooley recently published two blog posts on the possible insurance implications of the continuing spread of the coronavirus and on the more general commercial pressures that businesses are facing and will continue to face.
See: Executive Perspectives on Top Risks 2020
But when it comes to maximizing returns from a company’s insurance portfolio, every business should be thinking about two critical steps:
- Evaluating your insurance policies. Depending on the nature of the problems faced, a number of classes of insurance may be available to protect businesses, including event cancellation or other contingency insurance, political risk insurance, business interruption cover, directors & officers insurance, credit insurance or specialized insurance protections such as trade disruption cover and some types of performance bonds. With insurers already expecting to cover some of the losses, now is the time to think about how insurance might be useful in the coming months.
There are a number of key questions businesses should be considering when evaluating coverage under their existing insurance policies.
-
- Event cancellation insurance: Are there exclusions for disease? Is government action covered? Are insureds required to mitigate their losses? Are there sublimits that may apply?
- Political risk insurance: What event(s) trigger coverage? How long is the waiting period before coverage is activated?
- Business interruption insurance: Is coverage triggered only by physical property damage, or are there other coverage triggers?
- Civil authority coverage: What government action is necessary to trigger coverage? Are there waiting periods or time limits on coverage?
- General liability insurance: Have your operations caused or exacerbated the amount of bodily injury to others? Are there exclusions for disease?
- Trade credit insurance: When and how is coverage triggered? Does it require insolvency by a contracting party?
See: UK banks prop up SMEs with £7bn amid coronavirus outbreak
- Understanding what a company needs to do to preserve insurance coverage. Insurance is often a two-way street, with insurance companies requiring insureds to be proactive and appropriately mitigate and provide notice as soon as possible. Here are a number of additional steps companies may want to take:
-
- Mitigating losses: Ensure any steps that can be taken to mitigate your losses are put in place. Failure to do so may result in a reduction in any ultimate insurance claim.
- Give timely notice: Give careful consideration to the notice requirements in both your general contractual arrangements and in your insurance policies. Questions to consider when reviewing the notice provisions of your insurance policies include whether there have been any threats of a lawsuit or complaints by customers, and whether contractual counterparties have issued termination or force majeure notices. It is also important to bear in mind that notice provisions vary from policy to policy, and a failure to properly consider under what circumstances an insured must notify the insurer has the potential to compromise an entire claim. Finally, depending on your policy language, it may be appropriate to issue a notice of circumstances to preserve coverage.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
Support NCFA by Following us on Twitter!Follow @NCFACanada  |
Related Posts
One size doesn’t fit all: Strict regulations meant for big banks holding back fintech in Canada
Fintech Spotlight: A Rant About Crowdfunding- “More Transparency Please”
An Innovator’s Voice in government: Senator Deacon’s Second Reading on Bill S-6 (An Act respecting regulatory modernization)
Halifax Event Wrap Up: Crowdfunding, What it is and how to Benefit from it
UNICEF Australia’s ‘The Hopepage’ Uses Crypto Mining To Raise Money For Children
UK: A Step Towards UK Crypto-Asset Regulation? Treasury Committee Report Finds Current Status “Clearly Not Sustainable”
Leave a Reply