Reply to Love the Teachers But Don’t Want to Pay

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]What you're not recognizing is that these schools all have business interruption insurance policies.

Now, I'm not sure if those policies cover pandemics, but according to my dad, who has been an insurance lawyer for 35 years, many of them do.

So before we pay full tuition for a service that isn't being rendered, we need an understanding of whether our preschool's insurance policy and/or cash reserves cover salaries. If they do, we shouldn't have to pay tuition. If they don't, then I understand having to pay it. [/quote]

They don’t cover pandemics so your opinion is moot.[/quote]

Not true. Read this article: https://www.stroock.com/publication/will-business-interruption-insurance-provide-coverage-for-coronavirus-losses/

While many policies exclude pandemics, Lloyds developed specialty insurance that does. This is the relevant section:

Insurance Industry Response to Coronavirus

Standard business interruption policies typically include an endorsement excluding viruses and/or epidemics. However, in response to past epidemics, specialty insurance was developed to respond. For example, in October 2014, in response to the Ebola epidemic, specialty brokers in conjunction with the Ark Specialty Program of Lloyds of London offered a new type of coverage called “Pandemic Disease Business Interruption Insurance” to cover loss of income arising from government mandated closure of healthcare facilities and diminished revenue in the aftermath of a quarantine.[22]

The insurance industry is responding to the coronavirus epidemic. In early February 2020, ISO developed two new endorsement forms — “Business Interruption:  Limited Coverage for Certain Civil Authority Orders Relating to Coronavirus” and “Business Interruption:  Limited Coverage for Certain Civil Authority Orders Relating to Coronavirus (Including Orders Restricting Some Modes of Public Transportation).”[23] These forms provide coverage for actual loss of business income and extra expenses caused by a government order closing the insured’s premises or quarantining all or part of the premises and from government suspension of some modes of public transportation. If dependent properties are included in the coverage, such as a supplier’s or customer’s premises, then the coverage applies to the dependent property as well. Note, the forms were not filed with any states and are not being added to ISO’s form portfolio.[24]

So it's fair to ask a childcare center whether they have such coverage. [/quote]

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