As we navigate the incredibly complex coronavirus (COVID-19) pandemic response, we understand that our mutual customers may have questions as to how their insurance coverage will respond to business interruption and civil authority due to the unprecedented outbreak.

At this time, Frankenmuth Insurance will not be changing the terms and conditions of our policy as both coverages require “direct physical damage” by a covered cause of loss. Civil authority further expands the coverage to within one mile of the insured location. However, if the government prohibits access to the insured premises because of the possibility that infected people may be in the quarantined area, that prohibition of access alone would not constitute “direct physical damage” to the property.

In addition, some policies or endorsements contain an additional exclusion for “any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease.”

As with any claim, Frankenmuth Insurance will thoroughly investigate and evaluate the merits of each claim on a case-by-case basis, applying the specific laws of each state. If a policyholder has a specific circumstance that may result in a claim, we encourage them to submit a claim to our team for consideration.

Should you have any questions, please contact your field manager or underwriter.

This Agency Blog communication was prepared for the use of Frankenmuth Insurance agents and their employees only. It should not be copied, distributed or reproduced in whole or in part, nor passed to any third party.