The COVID-19 pandemic is a historic event that has affected millions of people worldwide. Caused by the SARS-CoV-2 virus, symptoms can range from mild to severe. It spread rapidly worldwide and preventive measures such as social distancing, wearing masks and practicing good personal hygiene were implemented to combat its spread. Several vaccines have been developed to prevent the disease from becoming severe in people who become infected.
Although COVID-19 has had a significant impact on the global economy and people’s health, it is not the first contagious disease that reveals how vulnerable the world remains to the severe impacts of viruses. Even though modern medicine seemed to have protected society from diseases such as polio, tuberculosis and influenza, we still see outbreaks of these diseases. It is therefore absurd to assume that we have conquered disease and its spread.
New germs and viruses appear, and society can be destabilized with each new strain.
If anything has become clear, it is the importance of preparedness for times like this. Rather than thinking of the world moving forward in terms of post-COVID-19, it would be far more shocking to realize that this is just setting the stage for another pandemic to appear.
This perspective allows us to better prepare and create comprehensive risk management plans to support society. Things like obvious economic losses due to a global pandemic can be better protected if we take the time to plan properly. There are usually indicators along the way and these outbreaks do not occur randomly.
What is the role of insurance in pandemics?
Insurers play a crucial role in pandemic preparedness and management by providing financial coverage to help mitigate the economic impact of infectious diseases on businesses and individuals. However, the role of insurers in pandemics can vary depending on the type of insurance and the specific coverage.
For example, in the case of companies, insurers may offer coverage for epidemic-related business interruptions, such as loss of income or additional costs incurred due to preventive measures, such as temporary closure of businesses.
For individuals, insurers may offer health coverage for treatment and hospitalization in the event of contracting an infectious disease. They may also offer coverage for income protection in case a person is forced to take time off due to illness.
“The importance of supplemental coverages in times of pandemic.”
What has become essential during these difficult times are supplemental contagious disease coverages. These are extensions or extensions of insurance policies. Supplemental communicable disease coverage typically includes any loss because of health problems. It is often considered a general coverage during specific epidemics that result in any type of business or work interruption.
Supplemental coverage can help cover any costs incurred (e.g., hospital bills, food or rent/mortgage). It is still common practice for property and liability insurance policies to exclude anything related to an epidemic.
However, business owners have begun to realize the importance, and communicable disease policies have begun to be offered in the marketplace. Most commercial organizations in healthcare, hospitality, childcare, retail and entertainment are already aware of this.
The COVID-19 pandemic has undoubtedly highlighted the importance of preparedness for future pandemics and the need for effective public health policies and measures to prevent the spread of infectious diseases.
Remember that at Rondon Brokerage we know how important it is to protect your business, contact us for more information about protecting your business from losses to pandemic and infectious diseases.
