Following is a brief discussion of the coverage offered in this endorsement.

Topics covered:

Introduction

Covered events

Covered expenses and limits

Introduction

Fireman's Fund Insurance Company has developed an endorsement that covers expenses generated by a covered crisis. It is intended to be attached to a commercial property policy that also provides business income coverage. Unlike business income coverage, which is triggered by direct physical damage to covered property, this endorsement can cover a broad range of expenses that might seriously impact a business. For example, a hotel guest is murdered in his room, and the hotel suffers such adverse publicity it is forced to close for a period of time. This endorsement provides loss of income coverage as well as the services of a public relations firm to assist in restoring the hotel's reputation.

In addition to the coverage, purchase of the endorsement allows the insured to access the Fireman's Fund website portal for additional information on preparation for a crisis or emergency, as well as links to useful government agencies, such as FEMA.

Covered Events

The range of events that can be coverage triggers include workplace violence, and other associated felonies, which can include child abduction or kidnapping, stalking of an employee, sexual assault, or criminal use of a firearm. The endorsement responds by covering expenses for medical assistance or funerals and counseling for those who were injured in the event, witnessed it, or even worked in the location where the event took place. Additionally, travel expenses for family members of deceased persons are covered. These expenses are in excess of any other benefits that might be provided by workers compensation, employee assistance programs, health insurance, or other applicable liability insurance the insured might have.

Loss caused by food contamination—as when a restaurant is forced to close because customers have come down with meningitis caused by an infected food worker—is covered.

Loss caused by premises contamination is covered. For example, a case of legionnaire's disease in a hotel sparks concern that the premises have been contaminated by the bacteria that causes the disease. The hotel must be closed while a careful evaluation is carried out. The endorsement covers the loss of income.

Additional covered events include explosion, fire, a construction or workplace accident, and equipment failure.

Covered Expenses and Limits

The endorsement provides loss of business income for any of the covered events for a total of sixty days. There is a twenty-four hour time deductible.

Extra expense is covered for sixty days, with no waiting period. Coverage for post-event expenses is limited to sixty days.

The endorsement features twenty-four hour access to a communications specialist who can assist the insured with a post-event strategy. This includes providing an assessment of the event, putting together a communications plan, and assisting in implementing it.

In event of a covered death, funeral expenses are limited to $5,000 per person. For survivors, medical expenses and related transportation is limited to $5,000 per person. Counseling expenses for survivors of a covered event are limited to $1,000 per person.

The insured can purchase limits of $10,000, $25,000, $50,000, or $100,000 each for all three coverages.