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 Property 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 (CP 76 13 05 13). The Crisis Response Coverage form provides limited coverage for loss of Crisis Incident Business Income, 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 a patron(s) resulting from tainted food purchased by you. To the extent a governmental authority or other agency 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 – ElitePac Property Extension Endorsement (CP 76 30 01 16). The ElitePac Property Extension Endorsement provides limited coverage for the actual loss of Business Income and Extra Expense you sustain from a suspension of your Operations by the Board of Health or another government authority because of the occurrence or suspicion of food poisoning of your patron(s) resulting from tainted food you purchased, improperly stored, handled or prepared, or communicable disease transmitted by one or more of your employees. To the extent a Board of Health or another government authority shuts down your Operations due to the occurrence or suspicion of the food poisoning of your patron(s) by food that was tainted by COVID-19 either when it was purchased by you, due to your improper handling, preparation or storage, or by communicable disease transmitted by one of your employees, 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:
- Senior Living ElitePac Property Extension Endorsement (CP 76 32 01 16)
- Comm.Unity of Faith ElitePac Property Extension Endorsement (CP 76 34 01 16)
- Resorts ElitePac Property Extension Endorsement (CP 76 46 01 16)
- School ElitePac Property Extension Endorsement (CP 76 48 01 16)
- Social Service ElitePac Property Extension Endorsement (CP 76 50 01 16)
- Temporary Room Vacancy Income – Social Service ElitePac Property Extension Endorsement (CP 76 50 01 16). The Temporary Room Vacancy Income coverage pays for the actual loss of Business income 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.
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 Property policies issued by Selective to New York policyholders are written with one of the following three base coverage forms: (1) Business Income (And Extra Expense) Coverage Form (CP 00 30 10 12); (2) Business Income (Without Extra Expense) Coverage Form (CP 00 32 10 12); and, (3) Extra Expense Coverage form (CP 00 50 10 12). A Commercial Property policy generally provides coverage for losses caused by the direct physical loss of or damage to property covered by the policy, including business income, extended business income, extra expenses and civil authority expenses. However, claims caused by or resulting from COVID-19 likely will not be covered under your Commercial Property policy. First, coverage under the Commercial Property coverage forms is only triggered by direct physical loss of or damage to property at the described premises caused by or resulting from a Covered Cause of Loss. Contamination by virus such as COVID-19 may not result in direct physical loss of or damage to property. Further, Selective attaches the New York – Exclusion of Loss Due to Virus or Bacteria form (CP 01 78 08 08) to all of its Commercial Property policies, which form precludes coverage for loss or damage caused by or resulting from any virus capable of inducing illness or disease. The exclusion applies to all coverage under all forms and endorsements that compromise the Commercial Property coverage part or policy, including but not limited to forms or endorsements that cover property damage to buildings or personal property and forms or endorsements that cover business income, extra expense or action of civil authority.