Many of our members have reported a slowdown in their business due to the impact of COVID-19 in the foodservice sector, and now possibly expanding into the retail markets. It is quite possible that this slowdown may continue, or even spread further.
“Generally speaking, financial losses caused by COVID-19 are not covered under the Business Income section of property policies,” said Jeff Gullickson, Senior Vice President of Western Growers Insurance Services. “This includes direct losses and those suffered as a result of customer issues. There are multiple policy wordings that work to the disadvantage of the policyholder for this type of event,” he noted.
In these instances, if your business has suffered a financial loss, Western Growers Insurance Services (WGIS) recommends that WG members still file a claim in anticipation of some type of government intervention or industry action.
Just this morning, a fund was proposed to the federal government by the insurance industry and a coalition of other trade groups to address the shortcomings of existing P&C policies: the COVID-19 Business and Employee Continuity and Recovery Fund.
Stemming from the recently passed $2.2 trillion stimulus bill, the proposed fund would be a new relief vehicle for businesses and workers affected by quarantine and stay-at-home measures. The COVID-19 Business and Employee Continuity and Recovery Fund is meant to:
- Help businesses retain and rehire employees,
- Maintain worker benefits, and
- Help cover operating expenses such as rent.
The new relief vehicle may also provide funds for payroll, lost income of sick employees, and lost business revenues (but not profits).
Click here for a detailed analysis of the COVID-19 Business and Employee Continuity and Recovery Fund.
We here at Western Growers Insurance Services are here to assist you. Please do not hesitate to contact us. We are available to review your current situation and provide guidance on how to access recovery funding. Please reach out to Ken Cooper at (805) 718-9403 or [email protected].