Work Comp Coverage for COVID-19 Could Come Down to “Presumptions”

Many states are enacting rules called “presumptions” that may cover COVID 19 work comp claims for essential workers.  The presumption is essential employees are “presumed” to have contracted the virus at work, thus triggering work comp coverage. More and more states are looking at this either through legislation or executive order. The thought process is to take care of the folks that took care of us during this pandemic.  

However the insurance industry is saying “hold on !”  The costs to the industry could be in the billions.  The insurance industry did not set rates to pay COVID claims. In addition the “presumption” laws for essential workers could creep into pandemic coverage for non-essential workers and that would be a financial catastrophe for insurance companies. 

The answer may be to turn to the Federal Government for help. Currently this is being reviewed by Congress. A Federal backstop, could not only cover work comp claims, but other COVID claims that businesses have suffered. Only time will tell if this gets accomplished. We will keep an eye on this and keep you up to date.

Until next time be careful out there and know your risks !

Posted by: G. Kevin Nemith, President/ Agency Leader / CNC Insurance /Pfister Insurance. Part of the Hilb Group of the MidAtlantic.   Top 20 Insurance Brokers in the Nation.