Several States Poised To Reopen Businesses Amid the COVID-19 Pandemic

Several States Poised To Reopen Businesses Amid the COVID-19 Pandemic

insurance industry news

States are now grappling with the efficacy of opening up businesses as the COVID-19 pandemic continues to surge. The concern is whether the risks outweigh the benefits, as discussions of exposure and possibly new outbreaks bring into question the economic benefits of opening non-essential businesses, even on a restricted basis.

It’s All Hanging in The Balance

The issue for insurance providers is the possibility of a flurry of workman’s compensation claims. The process to file claims is fairly simple. With people mostly quarantining at home, the greatest risk for exposure is returning to work. There is no need to prove employer negligence as insurance industry news experts warn.

This issue is further complicated by the fact that there is no coordinated way to open businesses again on a federal or state level, and there is no established plan for how to determine business-related liability factors should another outbreak occur. Sick workers have few choices on seeking compensation other than workers’ compensation or personal injury lawsuits. While the payout is less in compensation claims, the number of filings could still be a blow to businesses and insurers.

Insurance companies will be closely monitoring business openings and the claims that result. The legal ramifications of COVID-19 are impossible to calculate. Legal clarifications of verifiable claims may be on the dockets of insurance cases in the near future.