Theft of business personal property (like inventory/stock, copier machines, computer equipment), theft of money, vandalism and damage to your property caused by traditional causes like fire, wind damage, and water damage caused by pipe bursts during COVID-19 will be covered as normal.

However, you must still comply with any special requirements, such as: heat must be turned on, 24-hour onsite security must be present, lighting must turned on, etc. that might be contained in your Property, Crime or Inland Marine insurance policies for coverage to apply.

In addition, most Property policies have Vacancy Clauses that eliminate and/or reduce coverage when a Property is deemed “vacant”, usually for longer than 60 days, per the policy definitions.  For instance, if, at the time of loss, only 30% or less of your building had been used for normal business operations over the prior 60 days, the Property policy might not pay for damage caused by things like vandalism, theft, water damage, or glass breakage. 

As the stay at home orders related to COVID-19 continue, it is more and more likely that your policy’s vacancy condition will apply.  Please protect your property and comply with protective safeguard provisions as best you can.  We are starting to see insurance carriers proactively suspend their vacancy conditions, and we hope that others will follow. 

For suggestions on how to protect your property, please refer to these two helpful documents provided by Chubb Insurance Company.

Reduced Occupancy and Premises Shutdown

Checklist for Shutdowns