Does My Business Insurance Cover Covid-19 Losses?

The short answer to that question is: it depends on the policy.

Business interruption coverage generally allows a business to recover certain losses in the event that the business suffers physical damage or loss that prevents it from operating its business. For instance if a fire destroyed a business rendering it inhabitable and destroying merchandise, business interruption coverage would help with the lost revenue.

Following the Covid-19 crisis, many business owners (having paid their policies for years) expected their business insurance to cover lost revenue as a result of having to close down. Unfortunately many business owners are calling their insurance companies and finding out from claims adjusters that a) viruses are excluded or b) there was no physical damage, so there is no business interruption coverage.

As a result, some legislatures have proposed legislation requiring some insurance coverage for Covid-19 losses. Not surprisingly, the insurance industry is opposed to such legislation, arguing that it will wipe out the $800 billion surplus socked away by U.S. insurers for future claims. There is also the legal question of whether such legislation would be deemed unconstitutional under the Contracts Clause of the U.S. Constitution.

That said, numerous lawsuits have already been filed across the country, including one filed by the famous restaurant French Laundry in Napa, California. That suit seeks a declaration that the county’s order forcing restaurants to only serve take-out and delivery constitutes a prohibition of access to the restaurants and triggers coverage under the insurance policy.

Whether or not your policy include what is known as a civil authority provision is dependent on the actual policy. Many have a civil authority provision, but also have an exclusion for bacteria and viruses. The best advice at this point is not to wait to submit a claim. Almost all policies require claims to be submitted promptly.

Therefore review your policy to determine your rights as a business owner.

Playing it Safe in the Era of Safe Sport

In this first part of a three-part series of articles, Catherine Merrill takes a look at the new law and its application in the equestrian world.

The Genesis of Safe Sport

In 2018, Victims from Sexual Abuse and Safe Sport Authorization Act of 2017 (otherwise known as the Safe Sport Act) was signed into law. It came on the heels of nationwide scandals involving amateur athletes. The bill amended two federal statutes, 1) the Victims of Child Abuse Act of 1990 and 2) the Amateur Sports Act of 1978.

Essentially the Safe Sport Act:

1. Extends the duty to report suspected child abuse within 24 hours to certain adults who are authorized to interact with minor or amateur athletes in a facility under the jurisdiction of a national governing body. A national governing body (or NGB) is an amateur sports organization recognized by the United States Olympic Committee.

2. Allows for a civil remedy for victims with a statute of limitations of ten years from the date of discovery or from the age of 18.

3. Designates the United States Center for Safe Sport as the organization to develop policy, procedures and training for prevention of abuse.

4. Modifies the responsibilities of amateur sports organizations to have duties and responsibilities for the prevention of abuse.

On June 1, 2019, the United States Equestrian Federation’s athlete abuse prevention policies took effect. In the meantime, several high-profile equestrians have been banned for violations of Safe Sport.

Safe Sport Decoded

For many, USEF’s new prevention policies have raised new questions with few answers. The rules are new and a good number of amateurs and professionals are trying to understand their responsibilities under the Act. Here are some of the key takeaways:

Mandatory Training

Beginning January 1, 2019, all members of USEF 18-years of age and older were required to complete Safe Sport training in order to compete. The mandatory training requirement also affects adults who have regular contact with amateur athletes who are minors. A refresher course will be required on an annual basis*.

Required Prevention Policies

Meetings

• Between an applicable adult and a minor athlete at a facility partially or fully under the jurisdiction of USEF or at a USEF event may only take place if another adult is present. If a meeting takes place in an office or a tack room at a facility partially or fully under USEF jurisdiction, the door must be left open.

Training Sessions

• Individual training sessions at a facility partially or fully under the jurisdiction of USEF or at a USEF event may take place only if they are observable and interruptible by another adult.

• If the sessions is not observable and interruptible, the applicable adult must obtain written permission from the minor’s parents.

• Parents must be allowed to attend the training session.

Social Media and Electronic Communication

• If an applicable adult needs to communicate with a minor via social media or electronic communication, another adult or the minor’s guardian must be copied.

• If a minor athlete communicates to an applicable adult first, the adult should respond with a copy to another adult or the minor’s guardian.

• When an applicable adult communicates electronically with the team, the adult shall copy another adult

• Minor athletes may “friend” the organization’s official page.

• Legal guardians may request in writing that their minor athlete not be contacted by USEF or applicable adults subject to this policy

Transportation and Travel

Local:

• Applicable adults shall not ride in a vehicle alone with an unrelated minor athlete and must have two minor athletes or another adult present.

• Otherwise, written permission must be obtained in advance from the parent or guardian.

Team Travel:

• Team travel policies must be signed and agreed to by all minor athletes, parents, and Applicable Adults traveling with the USEF.

• When only one Applicable Adult and one minor athlete travel to a competition, the minor athlete must have his/her legal guardian’s written permission in advance and for each competition to travel alone with said Applicable Adult.

• Applicable Adults who travel with a USEF Team that includes a minor athlete must successfully pass a criminal background check and other screening requirements consistent with USEF’s policies.

• Applicable Adults shall not share a hotel room or other sleeping arrangement with a minor athlete (unless the Applicable Adult is the legal guardian, sibling, or is otherwise related to the minor athlete). However, a parent/legal guardian may consent to such an arrangement in advance and in writing.

• During team travel, when doing room checks, attending team meetings and/or other activities, two adults must be present and observable and interruptible environments should be maintained.

• Meetings should not be conducted in a hotel room

The above are key points from USEF’s Safe Sport Mandatory Requirements. It should be noted that there are recommended best practices which go above and beyond.

*Many members are now getting reminders that it is time for their refresher courses.

In my next article, I will discuss tips for parents to keep their minor athletes safe.