We began 2020 with future with a sense After all, we were starting a new was ripe for “20/20
Little did we know that just a few months into this fresh decade we would face a new challenge on a global basis. The novel coronavirus pandemic caused cities, nations, economies, and our daily lives to shut down in varying degrees. 2020 has no doubt been a difficult year for everyone, some more than others. Community associations and the industries that provide goods and services to community associations are no exception. However, as 2020 comes to a close and we begin 2021, it is important that we continue to look to the future with optimism, even if tempered by the cultural moment in which we find ourselves.
... ...
In this article, we will explore how the novel coronavirus pandemic has impacted the insurance industry as it relates to community associations. Before we get into that, let us give ourselves some context. Why does a community association need insurance? Why does any person need insurance? The fundamental purpose of having insurance is to protect oneself from risk. Aside from any statutory or governing document mandate for having insurance, a community association should have insurance to protect the association from risk. There are different types of risk. Accordingly, there are different types of insurance, which may or may not be similarly affected by various factors, such as the novel coronavirus pandemic.
So, what has changed in the insurance industry due to COVID-19? “Nothing really,”states Cindy Fitts of CISA Insurance. The insurance industry had an opportunity to deal with coverage issues involving a virus with the SARS outbreak in the early 2000s. Community association insurance policies have never been intended to cover disease and likely do not afford direct coverage for COVID-19.
Many, if not most, policies covering community associations with respect to property damage, business income or action of civil authority exclude loss due to virus or bacteria. Such exclusions state that the insurer “will not pay for loss or damage caused by or resulting from any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease.”
www.cai-illinois.org • 847.301.7505 | 41
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
