The Impact of COVID-19 (Coronavirus) on Your BusinessFebruary 19, 2020
As of Feb. 17, 2020, almost 1800 people have died and more than 71,500 people have been infected with the COVID-19 virus (referred to previously as Coronavirus). Additional cases have been reported in the U.S. with many more Americans undergoing testing. Airlines have suspended flights into and out of China. The U.S. State Department has put a code red travel advisory in place telling Americans not to travel to China.
From travel exemptions to supply chain issues, the COVID-19 virus is now affecting businesses around the world. The estimated losses are expected to reach a higher level than the SARS outbreak because of a downturn in the Chinese growth rate and the simple fact that China’s economy is much larger now. Major events have been cancelled, including the Shanghai Grand Prix and Mobile World Congress in Barcelona. Organizers of such events might have purchased “epidemic cover” but it’s important to have an expert review your coverage documents.
Our team at Sterling Seacrest Partners can help businesses protect themselves from the expected losses stemming from this virus. To start, it’s important to know what is in your business’ insurance coverage. Most policies don’t name specific diseases, so companies need to have a specific extension that covers communicable diseases and the losses that might be suffered during pandemics like this. Some insurance plans also have a geographic limit which would impact the loss coverage. Companies should consider adding International Package policies that include Voluntary Compensation insurance and Executive Assistance (EA) service. EA Service includes doctors on call 24/7 and many other services like medical evacuation.
Manufacturing is a big business focus in Wuhan, meaning the supply chain disruption is expected to be high. The outbreak occurred during the Lunar New Year, so many families were traveling and are now away from home. They’re unable to return to work … even if their business is open. It is all adding up to a disruption to the world’s economy.
To learn more about how Sterling Seacrest Partners can protect your business, contact John Miller, Kavin Smith, or Jenny O’Sako.