Beware: Communicable Disease Exclusion for Commercial General Liability Insurance

With more businesses set to slowly open their doors again, I’m certain that insurance carriers are going to start adding this Communicable Disease Exclusion onto Commercial General Liability insurance policies at renewal. I’ve reviewed various policies of my insured’s to see if this exclusion is tucked away in any current policies and I am not seeing much of it at this time, but I bet it’s coming. Here’s the policy form/exclusion I’m referencing:

It’ll be interesting to see how insurance carriers respond. Will they potentially remove it for an additional premium, or if it’ll be straight non-negotiable?

My suggestion is to keep your eyes open on your general liability policy to see if this is added at renewal and what the potential repercussions are for your business.

I think in due time, new regulations will be put in place within the insurance industry to address communicable diseases, but I feel this is critical to look at now from a Risk Management standpoint.

-JK

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About Jim Kinmartin - Business Insurance & Risk Management Broker

Jim is a California licensed Property & Casualty AND Accident & Health insurance agent working at the ISU - Olson Duncan Insurance brokerage in Torrance, CA. He grew up in Fullerton, CA and graduated from Servite High School in Anaheim and Loyola Marymount University in Los Angeles and currently lives in Long Beach, CA. Have questions? Just ask! Or, follow Jim on Twitter at @JimKinmartin

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