Companies may face business ramifications or be forced to shut down entirely due to the health problems and restrictions caused by the coronavirus. In addition, many have switched to working remotely from home, leading to questions over statutory workers' compensation insurance.
This page lists which losses caused by the coronavirus are covered by different corporate insurance policies and which are not covered. For detailed information on the terms for insurance cover, consult the insurance terms and conditions and your company’s policy document for the respective policy and the insurance contract. To view the documents, log in to the op.fi service.
Be sure to also read our answers to frequently asked questions on op.fi.
1. Property and general liability insurance
Normally, business interruption caused by the coronavirus can be compensated only from insurance cover against business interruption due to contagious disease.
The most common types of insurance provided by Pohjola Insurance that may include cover against interruption due to contagious disease include:
- Special Corporate Insurance (YH15)
- Extended Business Interruption Insurance and Business Interruption Insurance (KE03 and KE07)
Special Corporate Insurance (YH15) and Extended Business Interruption Insurance (KE03 and KE07) automatically include cover against interruption due to contagious disease. In Business Interruption Insurance (KE03), cover against interruption due to contagious disease is an optional supplementary cover.
Prerequisites of coverage for loss or damage caused by an epidemic
Entitlement to compensation from Epidemic Interruption Cover requires that the loss or damage is
- a direct consequence of a
- binding provision issued by a Finnish authority under the Communicable Disease Act, the Animal Disease act or the Food Act due to an unforeseeable cause during the insurance period, in order to prevent the spreading of communicable or animal diseases,
- which restricts the policyholder’s business at the permanent insurance location specified in the insurance policy during the insurance period,
- the communicable disease or animal disease on which the order is based must be diagnosed at the permanent insurance location specified in the insurance policy, and
- the order must also directly concern the insured business and be addressed specifically to the insured party.
All of the abovementioned requirements must be fulfilled simultaneously.
Business restriction refers to a partial or full prohibition against the use of a place of business or of property located therein and used for business purposes until such time as the place of business and property have been sanitised by non-standard and enhanced sanitation measures in order for the business operations to be resumed. This thus refers to situations where the communicable disease requires that the premises are cleaned and disinfected. In that case, insurance covers extra costs arising from disinfecting the premises. Furthermore, business restriction refers to situations where an authority orders that products found to be contaminated must be disposed of. In that case, the insurance covers costs arising from disposal as well as the acquisition costs of the inventories and fixed assets acquired in replacement.
You can check from the authority’s regulation under which Act it has been issued. All written regulations issued by authorities include the legal provision under which the regulation has been issued. The Finnish authority issuing the order may be a Regional State Administrative Agency, for example.
For loss and damage covered, the loss period includes the validity period of the order as well as a period of up to two weeks for resuming operations. in situations where the policy document contains a separate maximum indemnity in euros, the above two-week limitation is not applied but the maximum indemnity of the insurance policy is applied instead. Compensation in the aforementioned situations is paid only for the amount not reimbursed by the state or municipality or from other public funds.
The above prerequisites are in force when the term of your company’s insurance contract changes or begins during 2021.
The insurance does not cover for the prevention of business in situations, for example, where business premises are closed to avoid social contacts as a precaution in order to prevent the spreading of a communicable disease.