Chubb’s Pandemic Business Interruption Program is one initiative that Chubb panel counsel members may want to follow. The world’s largest publicly traded property and casualty insurance company is proposing a that a public–private partnership (PPP) can help businesses be better prepared for the next pandemic.
Key features of the Chubb PPP proposal include the following:
- A small business support program that features automatic payments of agreed-upon sums for financial support if another pandemic slows the economy. This program seems to resemble the “Paycheck Protection Loan” (PPP) launched by the federal government. A key difference seems to be that the financial assistance will be in the form of an outright payment, rather than the forgivable PPP loan. Additionally, Chubb proposes that all P&C insurers covering small business participate in the program.
- A separate program for medium and large businesses that uses the existing claims adjudication process to evaluate and pay insured losses.
- A focus on business continuation support. The goal will be to keep employees on the job, rather than provide unemployment assistance.
- Federal government involvement in risk management and mitigation. This would take the form of “Pandemic Re,” a proposed government reinsurance entity created for pandemic response.
Chubb panel counsel members can click on the link to find more information about the Chubb Business Interruption Program.
Work-from-Home Risks
Additional risks that Chubb panel counsel members might face in litigated claims include the following, according to a Chubb release.
Cybersecurity risk is elevated in a work-from-home setting. The increased use of personal devices or email accounts that have lower security levels may be one factor.
Dieting is one thing that Americans are NOT doing when they work-from-home. To the contrary, most workers are eating more, and in some cases also drinking more alcohol. Weight gain may translate into higher medical bills associated with workers’ compensation claims and other forms of liability claims.
Chubb panel counsel members can click on the link to find more information about the Chubb Work From Home Survey.
Auto Policy Claim Relief
Chubb announced in April that auto policyholders would receive a 35% premium reduction credit for the months of April and May 2020, with future additional discounts possible based on the pandemic. The average credit is expected to be $110 per vehicle. Premium credits will be applied automatically at renewal.
Chubb Financial Results
Chubb announced second quarter financial results on July 6, 2020. COVID-19 pre-tax loss estimates included:
- $605 million generated primarily from entertainment and commercial property-related business interruption products including travel insurance
- Liability insurance product losses of $553 million. These included professional liability (directors and officers, employment practices, professional liability, etc.) and workers’ compensation.
- Insurance credit losses of $107 million relating to surety and trade credit.
These losses may be offset to some extent by savings from lower accident and claim volumes as Americans drive less.
Fiduciary Liability Insurance
Chubb issued a white paper in May 2020 titled “The War on Retirement Fees: Is Anyone Safe?” The paper addresses increased litigation against fiduciaries of employer-sponsored retirement plans. Claims against a retirement plan may be covered by a Director & Officer (D&O) policy or a fiduciary liability insurance policy.
Chubb panel counsel members can click on the link to read more.
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Disclaimer
This article is provided for educational purposes only. It is not to be interpreted as legal advice or an opinion in regard to any topic discussed. The article should not be used as a substitute for legal advice from a licensed attorney in your state. Every situation is different and circumstances vary widely depending on the governing state law, policy provisions, and related considerations.
