Insurance is generally based on the principle of covering the few using the contribution of the many. In more professional terms, it is about spreading the risk across the whole group so that everyone pays a small amount regardless of whether they suffer the risk or not. It would therefore be logical that insurance would not work for a case where the risk is suffered by everyone. This is why virtually all insurance policies have a clause that excludes claims of loss due to an act of God which usually refers to natural disaster but can extend to mass casualty events such as a pandemic.
In the current climate that we are all facing, there has been a lot of debate as to whether the insurance covers loss suffered due to the CoViD-19 pandemic and many people are confused as to what options are available to them. While the current pandemic may or may not be the result of human intervention, the logic that is generally applied is based on whether this is a risk suffered by the few or by everyone. Unfortunately, as the actions needed to combat the pandemic affects everyone, it becomes untenable for the insurance to provide restitution to everyone who is suffering.
It should be expected that your insurance policy for non-health related coverage does not cover the indirect losses caused by the pandemic. An example might be the loss of income due to the business having to close during the lockdown. It is therefore important to check with the current insurance provider if there is a pandemic exclusion and clarify the position of the coverage in relation to indirect losses due to CoViD-19.
Moving forward, it is likely to be the case that insurance policies would add a specific exclusion for losses resulting from pandemics. Some types of insurance may necessarily need to cover pandemics, but this is something that would evolve over time as the insurance industry as a whole comes to terms with the new reality.
Particularly, within the medical malpractice sector, there have been changes to include a pandemic exclusion clause among many providers. However, the team behind Doctor Shield has worked closely with the underwriters to ensure that a pandemic exclusion is not added to the coverage at this time. Hopefully, this means that our clients have to worry about one less matter during this difficult time.
Our policies are underwritten by CHUBB, the world’s largest publicly traded Property and casualty Insurer. Doctor Shield is a convenient way to buy customised medical professional indemnity insurance at competitive premiums.
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