Critical Insurance Information During - COVID-19 - Advocacy. Tailored Insurance Solutions. Peace of Mind - Darley Home
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Advocacy. Tailored Insurance Solutions. Peace of Mind
Critical Insurance
Information During
COVID-19
1© 2020 HUB
© 2020
International
HUB International
Limited. Limited.
Todd Macumber Raymond Monteith David Chmiel
President, Specialty Practices & Senior Vice President, Practice Leader Senior Vice President,
President/CEO, Risk Services Organizational Resilience National Director of Claims
Carrie Cherveny, Esq. Tina Computzzi
Senior Vice President, Assistant Vice President,
Strategic Client Solutions & Compliance Workforce Productivity, Risk Services
2 © 2020HUB
© 2020 HUB International
International Limited.
Limited.
Agenda
1. Crisis & Business Continuity Planning
2. Impact on Insurance Coverages
3. HR and Employee Relations
4. Pay Continuation and Leave for Affected
Employees
3
3 © 2020 HUB International Limited.
1
Crisis & Business
Continuity Planning
4
4 © 2020 HUBTailored
Advocacy. International Limited. Solutions. Peace of Mind
Insurance
Business Continuity Planning: What is it?
• Exists to avoid any interruptions Routine
Maintenance
Initiate Business
that could lead to either significant Continuity Program
losses or a failure to achieve the
organization’s principle objectives Testing &
Acceptance
Conduct
Business Continuity
Business
Planning Lifecycle
• A process intended to ensure Impact
Analysis
critical activities are performed & Risk
Assessment
no matter what else is Solution
PHASE 2
happening. Implementation
Develop Recovery
Strategies
5 © 2020 HUB International Limited. ISO 22301 BCP Lifecycle
Business Impact Analysis (BIA)
Process designed to identify, categorize and prioritize:
• Critical functions / processes & vital records
• Required resources, personnel, & equipment
CRITICALITY
BUSINESS IMPACT TIER APPLICATION FACILITY
Mission Critical 1 • If we didn’t do this, what impact would it have?
Business Critical 2 • What would it cost over time?
• How significant is it to the organization over time?
Significant 3
Important 4
Best
No Impact
Effort
6 © 2020 HUB International Limited.
Identifying Critical Resources & Processes
Key Resources Inventory and Document Critical Processes
• Leadership • Collaborate with function leaders to identify key personnel,
tools, software, and other resources required to maintain
• Staff business critical processes
• Communications
• Technology • Establish the maximum tolerable downtime for critical
processes
• Facilities
• Supply Chain • TRIAGE: Acknowledge that everything is not mission or
business critical in a crisis situation.
7 © 2020 HUB International Limited.
COVID-19: Crisis Response & Communications 8 © 2020 HUB International Limited.
2
Impact on Insurance
Coverages
9
9 © 2020 HUBTailored
Advocacy. International Limited. Solutions. Peace of Mind
Insurance
Claims Management of COVID-19
Report ALL claims immediately-within the first 30 days is essential.
Provide comprehensive detail surrounding each claim filing
to insure a thorough review of coverage.
As state governments continue to assess, the extent of coverage may vary. (CO/MI/WI)
Carriers providing reporting instructions and avoiding coverage white papers.
Coverage will be strictly a carrier decision based on policy language.
The government has not mandated blanket coverage.
Conflicting opinions from multiple sources.
10 © 2020 HUB International Limited.Workers’ Compensation Workers’ Compensation Defined Illness must arise out of course & scope of employment. Not caused by conditions of which general public is exposed. Filing a Workers’ Compensation Claim Note Covid-19 in the accident description. Did the worker have contact with an infected person? Confirm when the symptoms began. Are they at greater risk than the general public? 11 © 2020 HUB International Limited.
Workers’ Compensation
State and jurisdictionally driven.
Moving target based on the “type” of work an individual does.
Healthcare & First Responders at greater risk.
Potential exists for coverage if in the “course and scope” of employment.
Business closures forced by the government are not covered at this time.
12 © 2020 HUB International Limited.Business Interruption/Property Coverage
Coverage is defined historically as “physical loss or damage”.
Many policies have a specified “virus” exclusion.
Policies with a “pandemic” endorsement are being reviewed for specific exclusions
that may alter coverage.
The mandated closure of businesses has not altered the coverage position set forth by
carriers.
Government has not forced pay for coverages.
13 © 2020 HUB International Limited.Business Interruption Guidelines Report claims within 30 days of occurrence. Are the premises/workplace or equipment contaminated? How? Are employees unable to get to work due to quarantine? Are there limitations to export or receive goods? Has there been physical damage? Document financial loss due to inability to receive supplies. Document all details related to the “clean-up” of the site. Examine the exclusions in the policy. Is there a virus exclusion? 14 © 2020 HUB International Limited.
Additional Line of Coverage Considerations Liability Claims Third-party claims for bodily injury could be brought for failure to warn others of the contamination. Check for virus exclusion. Cyber claims for “phishing” emails may be filed. Up 667% since February! Event Cancellation May cover events cancelled due to COVID-19 if the policy endorses coverage due to a pandemic or virus. Check for specific viral exclusions and policy limits. Directors & Officers Stockholders may sue due to the effect COVID-19 has on the firm. 15 © 2020 HUB International Limited.
4 Key Takeaways…
Report ALL claims in the first 14 days with detailed intel to allow for thorough carrier
reviews.
Business Interruption coverage historically seeks a physical loss
and typically has a virus exclusion.
Workers’ compensation claims are being evaluated for causation
in the course and scope of employment.
Was the exposed individual at a greater inherent risk than the general public?
16 © 2020 HUB International Limited.3
HR and Employee
Relations
17
17 © 2020 HUBTailored
Advocacy. International Limited. Solutions. Peace of Mind
InsuranceEmployee Health & Safety
OSHA General Duty Clause
Workplace arrangements (telecommuting and social distancing)
Fearful High-Risk Exposed Diagnosed
Employees Employees Employees Employees
Personal Protective Equipment
18 © 2020 HUB International Limited.Mitigating Risk
On-site employee screening – only for workers who are coming onsite or
exposed to other workers, customers, vendors, etc.
Taking Asking exposure Asking medical
temperatures questions questions
19 © 2020 HUB International Limited.Confidentiality and Medical Information
FMLA, ADA, and workers’ compensation
Employers have the obligation to ensure that all medical information
obtained about an employee is private and confidential
Separate files and records
Only those who “need to know”
20 © 2020 HUB International Limited.Title VII of the Civil Rights Act of 1964
Title VII prohibits adverse employment
Title VII prohibits discrimination on
actions against protected classes
the basis of:
including:
o Sex (including o National origin o Termination
pregnancy
o Age Discrimination o Failure to hire
and gender
in Employment
nonconformity) o Demotion
(ADEA)
o Race
o Genetic Information
o Color Nondiscrimination
Act (GINA)
o Religion
21 © 2020 HUB International Limited.Financial Considerations
Health Paycheck
Insurance Protection
Program
Reduced
Payroll
EPSL &
E-FMLA Employee
Retention
Credit
Furlough
Layoff
22 © 2020 HUB International Limited.Employee Benefits
HDHP and HSA
COBRA WARN Act
– new IRS Guidance
Coverage and Costs Reduction in Hours
(Families First Act) • ACA
• Self-insured • Benefit plan eligibility
• Fully-insured • Compensation reduction
(FLSA and ACA)
23 © 2020 HUB International Limited.4
Pay Continuation and Leave
for Affected Employees
24
24 © 2020 HUBTailored
Advocacy. International Limited. Solutions. Peace of Mind
InsuranceFamilies First Coronavirus Response Act (as of 3-30-20) Effective April 1, 2020 Sunset December 31, 2020 Model notice is now available: https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_ Non-Federal.pdf Outstanding questions (not exhaustive list) o Interaction with other leave laws o Impact to employers with more than 500 employees o Model forms have not been issued to date for Employer use 25 © 2020 HUB International Limited.
Families First Coronavirus Response Act (as of 3-30-20) Emergency FMLA Emergency Paid Sick Leave Employers with less than 500 employees Employers with less than 500 employees • Integrated employer test • Integrated employer test Employees with more than 30 days of service No minimum service requirement for employees Up to 12 weeks Up to 80 hours (full time) • First 10 days = unpaid • Prorated amount for part time employees • Remaining (up to) 10 weeks = paid at 2/3 • Pay may be capped at $200/day or $10,000 in aggregate Unable to work or telework due to care of child
FMLA and ADA
“Original” FMLA
o Serious Health Condition (SHC) of employee
o Serious Health Condition of a family member
o All other eligibility rules apply
o Unpaid
ADA
o May apply
o EEOC guidance on “pandemic preparedness,” addressing:
• How much information an employer may request from an employee who calls in sick
• When an employer may take the body temperature of an employee
• If employees can be required to stay home if they have symptoms of the pandemic influenza virus
• If employers may require doctors’ notes when employees return to work
https://www.eeoc.gov/facts/pandemic_flu.html
Generally encouraged to consider more flexible leave policies at this time.
27 © 2020 HUB International Limited.Short Term Disability
Group Short Term Disability Plans
o Carriers are remaining status quo in claims handling
o Quarantine does not necessarily satisfy the definition of disability under STD plan
o Each claim submission will be reviewed on a case-by-case basis
Statutory Disability Programs & Paid Family Medical Leave Programs (as of 3.25.20)
o California: Expanded State Disability Insurance (SDI) and Paid Family Leave (PFL) benefits for those quarantined or diagnosed with
COVID-19, waived 7-day elimination period
o Washington: Expanded Paid Family Medical Leave (PFML) benefits to those diagnosed with COVID-19
o New Jersey: May be eligible for Temporary Disability Benefits (TDB) and Family Leave Insurance (FLI)
o Rhode Island: Expanded Temporary Disability (TDI) and Temporary Caregiver (TCI) for those quarantined or diagnosed with COVID-19,
waived 7-day elimination period
o New York: Expanded Disability Benefits (DBL) and Paid Family Leave (PFL) benefits for those quarantined or isolated, benefits available
after exhausting sick leave, waived 7-day disability elimination period, not eligible for DBL/PFL if asymptomatic or not yet diagnosed and
able to work, PFL benefits may be available if employee needs leave to care for a child whose school is closed due to a “mandatory or
precautionary quarantine or order of isolation”
o Oregon FMLA: (Not a statutory disability or PFML program, but…) expanded OFLA to care for child whose school or childcare facility is
closed in conjunction with public health emergency
o District of Columbia FMLA: (Not a statutory disability or PFML program, but…) expanded DCFMLA for those who are unable to work as
the result of public health emergency as declared by the mayor
28 © 2020 HUB International Limited.Paid Sick Leave In general, employees eligible for paid sick leave pursuant to statutory or municipal paid sick leave laws are entitled to use their paid sick leave for COVID-19-related reasons, which may include quarantine. Many paid sick leave requirements apply when employee’s child’s school or childcare facility is closed by public health authorities Expanded/New Local Paid Sick Leaves (as of 3/25/2020) o Colorado: Emergency sick leave mandate for select industries o New York: Quarantine Leave now available, but statewide paid sick leave postponed o Seattle: Expanded existing sick leave 29 © 2020 HUB International Limited.
“Pandemic Pay”
Also referred to as “catastrophic pay,” “relief pay,”
“emergency pay”…
Generally impacts non-exempt hourly employees Generally provided in addition to other
where telecommuting is not an option. paid time off already provided.
• What if employees already have access • Will the employee need to provide any
Multiple to paid time off? documentation?
considerations: • How many days are provided? • What does the process look like?
• What are the qualifying circumstances? • What is the rate of pay?
30 © 2020 HUB International Limited.Interaction of Absence Programs
Quarantine Child School Closure Disabled/Diagnosed
Emergency FMLA
Emergency Paid Sick Leave
“Original” FMLA / possible
ADA / possible
State Leave (unpaid) / possible / possible
State/Local Paid Sick Leave / possible / possible
Employer Paid Time Off
Short Term Disability / possible
Statutory Disability/PFML / possible / possible
31 © 2020 HUB International Limited.Questions?
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32 © 2020HUB
© 2020 HUB International
International Limited.
Limited.Advocacy. Tailored Insurance Solutions. Peace of Mind
33
© 2020 HUB
© 2020
International
HUB International
Limited. Limited.Thank you.
34
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© 2020
International
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