Understandably, many business owners are currently very concerned about the economic consequences of the coronavirus crisis. However, insurance protection often exists – unnoticed in a large insurance package brokered at the time – .
Which insurance company will pay out?
In principle, business interruption insurance, practice closure insurance or a separate business closure insurance (often taken out by restaurateurs) could pay out. However, business interruption insurance must at least include an additional extension of coverage for official closures under the Infection Protection Act (IfSG). In some cases, extensions of coverage for so-called unnamed risks also apply.
In individual cases, it depends on the protection that can be inferred from the specific insurance conditions. Have your insurance conditions checked by a lawyer.
Even though it depends on the specific insurance conditions of the type of insurance in each individual case, the insured risk is usually the protection against
- the closure of a business by the relevant authority to prevent the spread of notifiable diseases or pathogens in humans.
The following three criteria are often recurring sticking points in the conditions of insurance.
1. The competent authority
According to § 16 Abs. 1 IfSG, the competent authority shall take the necessary measures to avert the danger threatening the individual or the general public as a result, if facts are established that may lead to the occurrence of a communicable disease, or it is assumed that such facts exist.
Section 28 IfSG allows the competent authority to impose extensive restrictions.
In Rhineland-Palatinate, according to § 2 of the state ordinance for the implementation of the IfSG, the responsible authorities are basically the district administrations, and in district-free cities the municipal administrations as district regulatory authorities.However, the state government as a whole can also be the competent authority, issuing an ordinance.
For example, the plant closures in Rhineland-Palatinate are currently (March 31, 2020) based on the 3rd Corona Control Ordinance Rhineland-Palatinate (3.CoBeLVO) of March 23, 2020. Of course, we are also aware of the corresponding regulations in other federal states,, in particular North Rhine-Westphalia, are also known to us.
2. Notifiable diseases and pathogens
The IfSG, to which the corresponding insurance conditions also refer in many cases, does not list the coronavirus as a pathogen, but is open to new pathogens.
According to § 15 para. 1, para. 2 IfSG, the Federal Ministry of Health issued, among other things, the regulation on the extension of the reporting requirement under § 6 para. 1 sentence 1 number 1 and § 7 para. 1 sentence 1 of the Infection Protection Act to infections with the novel coronavirus ("2019-nCoV") that first appeared in December 2019 in Wuhan/People's Republic of China (CoronaMeldeV).
Accordingly, since January 30, 2020, the obligation to report by name in accordance with § 6 para. 1 sentence 1 No. 1 IfSG has been extended to include the suspicion of an illness, the illness itself, and death in relation to an infection caused by the novel coronavirus ("2019-nCoV") that first appeared in Wuhan, People's Republic of China, in December 2019. This is therefore a notifiable disease within the meaning of the IfSG.
Therefore, it depends on the wording of the insurance conditions whether only the illnesses previously provided for in the IfSG trigger an insured event or whether the insurance conditions also allow for a corresponding ongoing development according to the wording of the conditions, as is now necessary with Corvit-19. You should leave this to a professional who is familiar with the standards for interpreting conditions.
3. Closure
The insurance conditions regularly provide insurance cover only upon closure. Whether you can actually speak of a closure of your business or business premises due to Corona depends crucially on the specific design of your business. A general judgment is out of the question here. It depends on the structure and organization of your company in the specific individual case.
4. Outlook
The coronavirus crisis is not only breaking new medical, social and economic ground, but also legal ground. This offers the opportunity to be able to set correspondingly favorable standards for a settlement in your favor through prompt legal action and also leaves room for negotiation with your insurer. It would therefore not be advisable at this time to wait for a protracted and tough settlement with the insurer before seeking legal help.
If you wish to be represented by us, we require the following documents from you in advance due to the large number of inquiries we have received in the last few days:
- insurance certificate/insurance policy
- insurance conditions
- If available: correspondence with the insurer or insurance agent
- A description of your business that is as precise as possible, including the relevant processes (for more complex structures, this could also be done during the telephone discussion)
Electronic communication and telephone means of consultation and examination of your matter is possible wherever in Germany your business is affected by a closure.
The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.