Core Library

Insurance Coverage for COVID-19

With the uncertainty created by COVID-19, a number of clients have contacted us regarding their current insurance policies around what is, and isn’t covered.

Although we would encourage you to contact us directly for specific policy advice, please see below some common insurance-related Q&As.

Am I covered for impacts of a COVID-19 pandemic? Most of the major insurance companies have recently issued statements confirming there would be nospecificexclusions related to COVID-19.

Therefore, it is likely you will be able to make an insurance claim under the current terms of your policy, unless you have a specific exclusion for a pandemic situation.

I don’t have COVID-19 but my employer has sent us home, can I claim income protection if there is no work? Income Protection Insurance is designed to help you if you develop a medium to long-term illness or become injured or permanently disabled; and therefore it is unlikely you will be eligible for a claim.

Also, you are normally required to be unable to work for a period of 30 to 90 days before your claim is paid, depending upon the waiting period you chose for your cover.

I have been diagnosed with COVID-19, can I claim? Potentially yes.

If you have contracted Coronavirus and/or other health-related complications and they mean you can’t work after the end of your waiting period, you may be able to claim income protection cover.

If I pass away from COVID-19, will my family be able to claim on my life insurance? Unless your life insurer has added a specific pandemic exclusion and provided your life insurance policy was already in place before you contracted COVID-19, your family should be able to make an insurance claim.

I don’t have life insurance yet but if I took out a policy could my family make a claim if I was to pass away from COVID-19? If you don’t have life insurance now, you should still be covered provided you took out the policy before you contracted COVID-19.

Naturally, if you have a pre-existing medical condition you may not be able to obtain life insurance and if you do, it may be with restrictions, limitations or medical related loadings.

Also, if you are applying for life insurance now, after the outbreak of COVID-19, some insurers may require you to answer questions concerning your previous travels or anywhere you plan to travel to in the near future.

I’ve been made redundant because of COVID-19. Can I claim for income protection? If you have income protection insurance with redundancy cover, you may be able to claim in the event you lose your jobor your business has to close because of COVID-19.

We suggest that you review the terminology and definitions specific to this type of insurance, to ensure that you understand how this may be of benefit to you.

Will my business interruption insurance cover impacts from COVID-19? Not all insurance policies are equal in their coverage. We would encourage you to undertake a thorough review to assess eligibility.

What else should I be doing to manage potential impacts of COVID-19? Understanding your position with regard to insurance coverage is important but we would also encourage you to take the opportunity to review your whole financial situation.

Taking a step back and undertaking a review of your goals and financial position is a good idea right now given the risk ahead or, if you are in a solid position, to plan when you may re-invest as we know from history that opportunities arise as the market begins its recovery phase.

As Warren Buffet has said, “the market may go up, the market may go down, the economy may fluctuate, but there will always be intelligent things to do.”