In most insurance policies for businesses, claims are excluded that are directly related to infectious diseases; however, a communicable disease rider may be purchased. This is designed to extend the coverage of the policy in such a way that it covers communicable diseases.

This rider is often referred to as “infectious disease insurance”. This broadens the policy so that it includes losses that stem from an infectious-based disease. It is a type of blanket coverage for pandemics and disease outbreaks. It may also be for specific types of diseases, such as COVID-19. 

Communicable Disease Coverage in Business Interruption Insurance

If your business has to endure a forced closure due to a disease, the communicable disease coverage in a business interruption insurance policy can provide you with compensation.

If you have a contingent policy, it may cover any lost revenue due to interruptions in a supply chain during a period where an outbreak is occurring. 

Communicable Disease Coverage in General Liability Insurance

In some general liability insurance plans, a ride for communicable disease may expand the “special event” portion of your coverage. This allows your company to become entitled to varying degrees of compensation for events that you had to cancel due to an outbreak of an infectious disease. 

Communicable Disease Coverage in Commercial Property Insurance

For a commercial property insurance policy, the rider for infectious disease may cover the costs associated with testing, the removal of, discarding, and the replacement of property that is part of your business immediately following an outbreak of any type of contagion.

Additionally, it may aid in the expenses associated with public relations if the outbreak directly impacts your business. 

How to Make a Claim with a Communicable Disease Rider 

If you are capable of showing that you have experienced direct damage or interruptions have been experienced in your business as a result of an infectious disease, you may make a claim on any communicable disease rider that you have added to your insurance policy.

You will need to show evidence of a contagious disease on your property, in most instances. An example would be a positive test for a coronavirus from someone that works at your location.

Once you feel that it is time to file a claim, you should contact your insurance provider for assistance. Each policy and rider may result in unique requirements. 

Contact Us Today 

We here at Modica Associates are highly knowledgeable in insurance for your business. Regardless of whether you have a policy in place or not, we can help you determine if you should add a communicable disease rider to your policy.

Additionally, we can find you the absolute best rates on your business insurance. We will collaborate with you to ensure that you have all necessary coverages in place.

If you would like more information or would like us to provide you with a quote, contact one of our specialists today. Simply call the following number to speak with a professional now: 718-855-1836