Product Update

COVID-19 Claims Risk Management Checklist and Market Corner Update in Risk Financing

Risk Financing Perspectives for June 2020 offers a best practices checklist for potential time element (for business interruption losses and extra expenses) and other claims resulting from the COVID-19 pandemic. Unless legislation is adopted that stipulates otherwise, an insurer's response to a claim is dependent entirely on the language in each insured's specific policy—or at least that is the intent at the time coverage is underwritten and priced. Some policies have virus exclusions that may apply, while others may have specific coverage grants and sublimits. The discussion outlines the basic steps an insured can follow if it believes coverage is available.

"Market Corner" provides quarterly updates on current property and casualty insurance market conditions. Conditions in the US property-casualty insurance market can best be described as being in a state of flux. While some sections of the market remain comparatively stable despite the volatility in the financial sector and social unrest, others are anything but that. Changes in pricing and capacity for automobile liability, general liability, and excess liability insurance are making renewals very challenging. Insureds are advised to begin the renewal process early, provide thorough and well-organized underwriting information, and be prepared to restructure their insurance programs as underwriters make changes to limit their exposures, especially in the first $100 million of commercial liability insurance towers. The industry remains very well capitalized, but underwriters are very selective in determining where to put that capital at risk.