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COVID-19 has hit all industries hard, causing impacts, delays and financial losses on an unprecedented scale. The Energy Industry, in every one of it’s sub-sectors, is reeling from the same material impacts and economic slowdown. Investment activity has stalled significantly as businesses and customers work through their own business interruption issues causing impacts on the demand for consumption.
In the retail segment, in many cases, orders have dropped steeply as customers put off commercial or residential equipment installations to avoid possible contact with the virus or due to ingress/egress to specific areas of the country being completely halted as non-essential business activities.
All businesses and organizations - large or small – facing business Interruption and other financial impact from Conronavirus need to calculate and document their losses properly before applying for local or federal grants, insurance proceeds or other areas of potential recover. A few essential action items include:
- Establish a separate account number or charge code in your cost accounting system under which all Coronavirus loss-related costs will be captured.
- Calculate your business’ operating “baseline” - usually a 2-3 year look-back of the business performance to use for comparative purposes during the disruption period.
- Speak to your trusted business advisers, including attorneys, insurance brokers, risk management professionals and CPAs.
- Continue to monitor the news and sign up for local text alerts in your area to stay informed as the situation continues to develop.
- Keep track of all local, state or federal directives that impact your business.
Please be advised that any and all information, comments, analysis, and/or recommendations set forth above relative to the possible impact of COVID-19 on potential insurance coverage or other policy implications are intended solely for informational purposes and should not be relied upon as legal advice. As an insurance broker, we have no authority to make coverage decisions as that ability rests solely with the issuing carrier. Therefore, all claims should be submitted to the carrier for evaluation. The positions expressed herein are opinions only and are not to be construed as any form of guarantee or warrantee. Finally, given the extremely dynamic and rapidly evolving COVID-19 situation, comments above do not take into account any applicable pending or future legislation introduced with the intent to override, alter or amend current policy language.