General Commercial Liability and COVID-19

PA small business owners should read general commercial liability policy before re-opening during COVID-19.  Fenters Ward is here to help with insurance coverage issues. 

This pandemic has caused many small business owners to become hyper aware of their insurance coverage and certain policy exclusions.  Well, here is yet another issue facing many Pennsylvania businesses during this time of crisis. 

Last week we talked about ‘business interruption’ coverage.

This week we are advising our small business friends to look at their General Commercial Liability policy.  You may find that you do not have coverage during COVID-19.   Before making the decisions to open you need to know the risks.   

We represent thousands of people who are physically injured, or harmed by predatory business practices each year.  A significant portion of our clients have issues with ‘bad faith’ insurance claims.  ‘Bad faith’ is when the insurance company improperly denies a person or business a money benefit under a policy.  It happens often, because the insurance company relies on the fact that most will not challenge them on the fine print.  You need a lawyer to review every denial of insurance coverage. 
Today, we are talking about ‘policy exclusions’ in your ‘GCL’ or ‘general commercial liability policy. ‘   This is the policy that protects your business against lawsuits brought by third parties.  For example, if an employee injures someone in a motor vehicle accident, the GCL is the policy that protects the business from having to pay out of the operating account. 

The policy exclusion you need to look for reads something to the effect:  Your coverage is not available if your business is operating in violation of any local, state, or federal governmental order. We expect that insurers will use Governor Wolf’s order to their benefit.  Don’t be caught off guard. 
Insurance companies take every opportunity deny coverage if they can.  Insurers protect their bottom line, after all, it’s a business driven by profit. 

Please feel free to give me a call if you have questions about your general commercial liability policy.   Or, if you think that you have been wrongfully denied an insurance claim within the past 2 or 4 years. 
I can be reached directly at 877-259-WARD.

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