On March 17th, John F. King, Georgia’s Insurance Safety Fire Commissioner issued Bulleting 20-EX-3 (the “Bulletin”), stating that the Georgia Department of Insurance will offer expedited review for two new endorsement forms relating to business interruption insurance and COVID-19.
The two new endorsement forms provide coverage for actual loss of business income and extra expenses caused by a government order closing an insured’s premises or quarantining all or part of the premises, and from government suspension of some modes of public transportation. Additionally, if dependent properties are included under the policy, such as a suppliers or customers premises, then the coverage applies to the dependent property as well.
Typically, business interruption policies in the state excludes loss caused by or resulting from any virus, bacterium, or other microorganism that induces or is capable of inducing physical distress, illness, or disease.
During the COVID-19 crisis, the Georgia Department of Insurance intends to remove any barriers to insurers offering coverages that may protect Georgia businesses.
Locke Lord will continue to monitor these developments.
Visit our COVID-19 Resource Center often for up-to-date information to help you stay informed of the legal issues related to COVID-19.