There is no question that COVID-19 has changed the way we live, work, and transact in 2020. The impacts of these changes may yet be felt for many years to come.
While we are all rapidly adjusting, it is important to consider the actual or potential business insurance impacts. Some questions that may assist you in starting this review process are:
Have you changed the way you work or do business? Has your business grown or contracted?
If the answer is ‘Yes’, a comprehensive review of your business insurance program may be necessary. The following are just a few examples of how your business, and correspondingly insurance needs, may have changed in recent months as a result of the COVID-19 pandemic.
Social distancing and other protective measures: You may have had to increase measures taken to protect your service providers, customers, and workers from COVID-19 exposure such as:
It is important to consider what the potential exposure of your business is if the above fails and someone contracts COVID-19 through that failure. You should ensure that not only your business, but the businesses of those in your supply chain, are appropriately covered for any liability that may ensue. For example, there may be some interesting liability exposures following the Victorian Quarantine Royal Commission.
Working from Home:
Working from home (WFH) has become the new normal for many businesses. As an employer, you retain a primary duty of care and must do what is reasonably practicable to ensure the health and safety of your workers, including when allowing workers to WFH. This extends to ensuring that your worker WFH has:
The exposure of employers to workers who are injured when working from home was highlighted by a recent, widely publicised decision in Workers’ Compensation Nominal Insurer v. Hill [2020] NSW CA54. In that case, the worker was executed by her paranoid spouse when working from home and the employer’s insurer was found liable to pay her children benefits. The New South Wales Court of Appeal found that the spouse’s paranoia related to the way she worked from home and therefore “the fact of her employment…. was a predominant and potent cause of the injury”.
You should also consider whether your workforce has contracted or expanded, whether you have moved workers to contracts and whether they are working fewer or greater hours, as this may impact the premium you are paying for workers’ compensation insurance.
Unused Business space and assets:
Cyber Risks:
More than ever, businesses are heavily reliant on technology and connectivity as part of their daily operations. Cyber insurance policies are designed to provide pre and post incident support to businesses against the growing threat of cyber events and ensure operational continuity throughout any cyber event. This is essential cover for businesses who are primarily relying on technology to stay in business.
Travel:
You may reconsider the need for travel insurance for the next 12 months given travel restrictions are likely to be in place in some form or another until a vaccine for COVID-19 is discovered.
Katherine (08) 7919 7019
2/46 Chardon St