Like most property coverage offered by other insurance carriers, Selective’s property insurance does not cover loss or damage caused by or resulting from a virus. This means that your insurance likely does not provide coverage for property loss or damage, including loss of income, caused by or resulting from COVID-19. There are, however, some limited instances where coverage might exist that we discuss further below.
Your business’s property insurance, specifically your Selective Commercial Output policy, may include the following coverages if you purchased certain enhancement endorsements. These coverages would be available to you if your business suffers a loss or damage from COVID-19. You can confirm whether or not you purchased these enhanced endorsements by referring to the applicable form or Schedule in your policy or the Declaration Page, and reading the sublimits of liability.
- Food Contamination Shutdown – Crisis Response Coverage (CL 50 29NY 05 13). The Crisis Response Coverage form provides limited coverage for loss of Crisis Incident Earnings, Crisis Incident Extra Expense and Off-Premises Crisis Incident Extra Expense (as those terms are defined in the policy) in the event of the shutdown of a business or location by the Board of Health or other governmental body because of the occurrence or suspicion of food poisoning of your patron(s) resulting from tainted food purchased by you. To the extent a Board of Health or other governmental body shuts down a business or location due to the occurrence or suspicion that food purchased by you was tainted by COVID-19 and caused food poisoning to your patron(s), this coverage may be triggered.
- Food Contamination Shutdown – Commercial Output Program PremierPac Enhancement Endorsement (CO 50 02 10 17). The PremierPac Enhancement Endorsement provides limited coverage for the actual loss of earnings in the event of the interruption of your business by a declaration by the Board of Health or other government body due to the actual or suspected food poisoning of your patron(s) resulting from tainted food purchased by you. To the extent a declaration by the Board of Health or other governmental body because of the occurrence or suspicion that food purchased by you was tainted by COVID-19 and caused food poisoning to your patron(s) interrupts your business and causes loss of earnings, this coverage may be triggered.
- Communicable Disease Extra Expense (“CDEE”). CDEE pays, subject to a sub-limit, for Extra Expenses incurred when a Board of Health orders the insured premises to be evacuated, decontaminated, or disinfected due directly to an outbreak of a communicable disease at the premises. Covered expenses include costs to evacuate, clean/remediate, and test the premises, and for medical tests, care, and hospitalization of infected non-employees. CDEE does not cover fines or penalties, loss of business income, extra expense caused by suspension, lapse, or cancellation of any license, lease, or contract, or an expense covered elsewhere in the Policy. In the event your policy contains any of the following enhancement endorsements, you may have coverage for CDEE:
- Golf Course/Country Club PremierPac Enhancement Endorsement (CO 50 04 04 14)
- Comm.Unity of Faith PremierPac Enhancement Endorsement (CO 50 05 04 14)
- Schools PremierPac Enhancement Endorsement (CO 50 06 04 14)
- Social Services PremierPac Enhancement Endorsement (CO 50 07 04 14)
- Resort Hotel PremierPac Enhancement Endorsement (CO 50 28 04 14)
- Assisted Living Facilities PremierPac Enhancement Endorsement (CO 50 39 04 14)
- Temporary Room Vacancy Income – Social Services PremierPac Enhancement Endorsement (CO 50 07 04 14). The Temporary Room Vacancy Income coverage pays for the actual loss of earnings you sustain when a room occupied by a resident or client of your facility becomes vacant as a result of the temporary hospitalization of the resident or client due to accident or illness. The coverage is subject to a 72-hour waiting period and a sub-limit. In the event your policy contains this endorsement, you may have coverage for Temporary Room Vacancy Income.
If you have suffered loss or damage and you believe any of these coverages may apply, we encourage you to report a claim in whichever manner is easiest for you, such as via the Selective mobile app, Selective.com, by calling us at 866-455-9969, or by contacting your agent. We will promptly review and adjust your claim. Whether and the extent to which coverage is available depends upon the specific language of your policy and the facts of your claim. You can obtain a copy of your policy through our Self Service portal or by contacting your agent. Nothing in this letter can alter the terms, conditions, exclusions and limitations of your policy.
If you have any questions about your policy or available coverages, we encourage you to speak with your agent.
1 The Commercial Output policies issued by Selective to New York policyholders are written on the Commercial Output Program Income Coverage Part form (CO 10 01 04 02). Coverage under the Commercial Output coverage form is only triggered by the interruption of your business by “direct physical loss of or damage to property at a ‘covered location’… as a result of a covered peril”. Contamination by virus such as COVID-19 may not result in direct physical loss of or damage to property. Further, Selective attaches the Virus or Bacteria Exclusion form (CL 07 00 02 07) to all of its Commercial Output policies, which form excludes as a covered peril any loss, cost or expense caused by, resulting from, or relating to any virus that causes or is capable of causing disease, illness or physical distress. The exclusion applies to all coverages, coverage extensions, supplemental coverages, optional coverages and endorsements that provide coverage for property, earnings, extra expense, or interruption by civil authority. The exclusion further applies to any loss, cost or expenses as a result of any contamination by or denial of access to property because of the virus.