COVID Insurance Issues: Update from Brown and Brown Insurance Brokers

June 15, 2020

RCP Management
2 Commerce Drive, Suite 101
Cranbury, NJ 08512

Re: Opening amenities during COVID-19

As I am sure you can imagine, questions about COVID related insurance coverage have increased
by the hour as additional executive orders are released regarding the opening of amenities.
Unfortunately for me, there are no concrete answers from the insurance world despite many brokers
in our industry having an opinion on what the result will be.

Although we know that liability policies were never intended to cover infectious disease, the
association insurance carriers have been non-committal regarding their eventual stance on general
liability coverage for COVID related claims. They plan on investigating each one on a case by case
basis. At this time though, defense and indemnity payouts are not expected to be paid by insurance
carriers. It is essential that all future COVID claims be submitted through us for formal determination
from the carrier, who will be investigating each on an individual basis.

While we understand the concerns regarding potential liability with re-opening amenities, the
determination of liability will happen in the court of law. While many believe that it will be very
difficult to prove that the association was responsible, it is still imperative that the association
follow the up to date state and local guidelines. We are strongly advising our clients to seek the
advice of their attorney and not act on what is read or heard through other attorneys within the
industry. In the end, the association’s attorney will most likely be handling the defense and may
have additional suggestions such as waivers, timeslots, and social distancing enforcement that may
aid in their ability to defend out of the case quickly.

In speaking with clients about the particulars of Executive Order #153 and the Department of
Health Guidelines that go along with, I know that the cost of compliance becomes a major factor in
deciding whether to open pools. I also understand that insurance plays a part as well, so if I can be
of any further assistance, please let me know.

Sincerely,
Ryan L. Weiner
Ryan Weiner, CIC, AAI
Senior Vice President, Community Association Division

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