6 Best Practices for Manufacturers During this Time of COVID-19
While the landscape seems to be changing daily, the Manufacturing team at Assurance is working diligently to keep our manufacturing clients and prospects apprised of critical updates relevant to their businesses. Below are the most critical recommendations.
- Business Insurance – Insurance policies are written based off exposures – payroll, sales, vehicles. Be sure to review your current exposures. Do you have significant changes? Talk with your broker about adjusting values now and reducing premiums midterm. Also, if you changed your employee job duties you will need to review NCCI class codes. Policies are specific to the industry and the jobs performed.
- Track Your Losses – Track the loss of rents, lost revenues and lost time. While we all have the understanding that most policies do not provide any business income coverage in this event, there is a consensus among industry leaders that the federal government will issue a relief plan for manufacturers in the future. It may be something like a tax credit or other tax deferral/forgiveness program. It will likely be based on losses; so, be sure to keep up on this!
- File the Business Income Claim – We recommend that insureds file these claims, even where there is a specific policy exclusion. If governmental insurance directives or future case laws allow carriers to identify claimants and provide relief, you want to be counted in.
- CARES ACT – Here is a link to the key provisions of the CARES Act from the Illinois Manufacturing Association
- Directors & Officers and Employment Practices Liability – Check in on your claims made policies. Many of these policies don’t currently include a viral/communicable disease exclusion. The exclusions will be added at renewal. Check the notice requirement in the policy and be sure to craft your Notice of Circumstance letter in accordance with the policy requirements before sending into your insurance carrier. You want to reserve your right under the policy in the event of a future claim.
- Cyber – Cyber criminals are taking advantage of the fear and uncertainty during this global pandemic. The increase of remote workers is presenting more opportunities for cyber-attacks. Continue educating your employees on cyber security. Risk professionals should work with their insurance advisors to carefully review cyber policies and limits.
The Coronavirus pandemic is changing rapidly. These are our recommendations as of April 29, 2020. If you have any questions, or additional information to share, please reach out directly to your ‘A’ Team member or Tammy Incapreo, Vice President Manufacturing Practice, at firstname.lastname@example.org.
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