Corona Virus Disease 2019 (COVID-19) Hiscox USA Direct & Partnerships Division
Frequently Asked Questions
Business Interruption (Business Income)
Q As a result of COVID-19, my business has lost revenue/income. Does my policy provide any
coverage for such business losses? A Unfortunately, business income is not covered by most Hiscox policies. While Hiscox’s
Business Owners Policy (BOP) does contemplate business interruption coverage, that coverage is unlikely to apply (see further discussion of this coverage in the following question). Nevertheless, if you would like to submit a claim please use the online claim submission process and a claim handler will review your submission for coverage.
Q Does the Business Owners Policy’s Business Interruption coverage apply to lost revenue/income or closing a business due to COVID-19?
A The Business Interruption coverage in the BOP is only triggered when there is "direct physical loss", meaning real/physical property damage, by a "covered cause of loss". Additionally, the BOP includes a ‘Virus or Bacteria’ exclusion applicable to Business Interruption claims that states: ‘We will not pay for loss or damage caused directly or indirectly by...’
‘Any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease.’
Source: SECTION I – PROPERTY, B. EXCLUSIONS, item j. Virus Or Bacteria (all states except as
noted below) Massachusetts – Exclusion of Loss Due to Virus or Bacteria (BP 06 06 01 07) New York – Exclusion of Loss Due to Virus or Bacteria (BP 06 04 03 08) Nevertheless, if you feel there is reason to file a claim for Business Interruption, we recommend that you use the online claim submission process and a claim handler will review your submission for coverage.
Late Payment Accommodations
Q As a result of COVID-19, my business has lost revenue/income . Is any premium payment relief offered? A We understand this is a difficult time. As respects your monthly premium or annual renewal payments:
• Hiscox will follow any regulatory mandates that are issued regarding payment relief, noting several states have already done so (e.g. CA, NY, WV, AK).
• We offer our policyholders a convenient monthly payment plan with no installment fee, which is the choice for the majority of our policyholders.
• Our standard process for late payment follows the applicable state-mandated cancellation waiting period, which offer policyholders a window of time to make payment after the due date before a policy will actually be canceled (with multiple notifications going to policyholders before this cancellation date). This generally means 30-45 days following the due date, depending on the state, before the policy is actually canceled.