Insurance Coverage in the Time of COVID-19

The human cost of the recent coronavirus, COVID-19, has been staggering. On March 11, 2020, the World Health Organization declared the coronavirus a pandemic; and, as of April 15, 2020, there have been more than 2 million confirmed cases worldwide. The economic toll of the virus also has been dire. Multiple companies have shuttered their businesses, major conferences have been canceled, and the stock market has dropped more than 20 percent.

Prudent companies are taking proactive measures to minimize the spread of coronavirus, which includes introducing heightened sanitation; adopting remote work for employees; canceling events; and, in some cases, suspending operations. As part of preparation efforts, risk managers, in-house counsel, and internal crisis management teams also should consider whether there is any insurance available to help offset potential losses and liabilities. This article sets forth several key considerations regarding how insurance may help manage the risk and mitigate losses.