April 15, 2020

Pandemic Property Loss Prevention

The Stay at Home and Shelter in Place orders throughout the country, have resulted in displaced employees, reductions in operations and temporary shut-down of facilities. While these extraordinary measures appear to have yielded better than expected outcomes, there have been no clear indications when the orders will be rescinded.

It is not uncommon for commercial property insurance policies to contain a “Vacancy Clause” that may limit or eliminate coverage for buildings that have been unoccupied for a specified period of time, typically 60 days. While insurers have indicated it’s unlikely this clause will be invoked, for businesses that are temporarily idled in response to these unprecedented times, applicable coverage will be based on the facts and circumstances at the time of loss.

Therefore, continuation of diligent risk control practices is a high priority. The attachment below is a checklist, provided by FM Global®, as a guide for pandemic property loss prevention.

FM Property Loss Prevention Checklist

With so many concerns facing businesses in response to the COVID-19 pandemic, it’s possible that some important operational practices may inadvertently become less of a priority during these times. However, continuing your focus on property loss prevention throughout the temporary shut-down of your facility, will mitigate the exposure to loss, allowing for the earliest possible return to normal operations.

The Fedeli Group is dedicated to assisting our client-partners throughout these difficult times. Please contact your Fedeli Group team to discuss this topic or any other questions or concerns you may have. 

Have questions or concerns? Let’s talk.

Our mission is to help clients protect assets and enhance employee outcomes through the delivery of exceptional risk management and employee benefit consulting services and products.

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