Maine Superintendent of Insurance Eric Cioppa has reminded business owners of the importance of complying with the terms of their insurance policies as they begin the reopening process.
As businesses reopen, Cioppa said they should consider Governor Janet Mills’ COVID-19 orders and the terms of their commercial insurance coverage.
Like policies in other lines of coverage, commercial property and casualty insurance policies generally limit the type and amount of coverage they provide and exclude certain risks completely. Typical exclusions include intentional misconduct or illegal activity, according to a Maine Bureau of Insurance press release.
Businesses that reopen without reading their policies or contacting their agents to talk about their coverages might put the insurance protections that they have paid for at risk, according to the release.
For example, failing to adopt reasonable safety procedures, such as frequent cleaning or limiting the number of customers in a store, could give the insurer grounds to reconsider whether to pay a claim or renew the policy, and in some circumstances, might even be grounds for cancellation, the release added.
The Bureau is strongly encouraging business policyholders and residents who have questions or concerns about insurance coverage during Maine’s reopening to contact their insurer or agent to discuss their concerns.
Source: Maine Bureau of Insurance
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