What is the importance of proper insurance during the corona crisis?
The current corona crisis has virtually flattened the entire world. The corona virus (aka COVID-19) has spread throughout the world in no time. This virus has caused countries to switch to drastic measures. In which some countries have even moved to a complete "lockdown." This means that the entire country goes on lockdown. People are no longer allowed to leave their homes. In the Netherlands, we have not yet reached a complete lockdown.
However, measures have also been taken in the Netherlands. For example, there is virtually no more flying, stores are closing their doors and people are staying at home en masse. This has major consequences for the Dutch economy. In fact, some people are out of work because companies are closing down or orders are not going through. Others can no longer work because they have fallen ill. Good insurance is perhaps more important now than ever, to compensate for the financial loss people suffer. In this article, Alpina explains what good insurance means for you in this corona crisis.
What are the most important insurances, when you are sick at home or out of work?
The corona crisis puts everyone in a special situation. Are you suffering from a runny nose and headache? If so, chances are goot that your employer will require you to stay home. However, you may also be sent home because there is no more work. If you are employed, this need not be such a big problem. After all, you get paid through your job or your job applies for compensation for payroll costs from the government.
However, it is a bigger problem when you own your own business and are the only one working in it. Here it doesn't matter whether you own a limited liability company or are self-employed through your sole proprietorship. When you fall away, so does your income. Can you protect yourself from this financial loss?
Events
The event industry has been hit particularly hard by the corona crisis. In fact, no event may go ahead. In addition, smaller events are advised not to go ahead for public health reasons.
For event organizers, this is a dire situation. Preparing for an event, such as festivals, can take weeks, months or in some cases even years of time. Then, when an event is canceled, organizers lose tens to hundreds of thousands of dollars. Many companies cannot absorb these kinds of losses in one fell swoop and thus risk bankruptcy.
To be protected in this type of situation, it is possible as an organizer to take out event insurance. You can include in this insurance the expense policy, which insures you against losses due to the event being canceled.
However, there are some conditions attached to this. For example, the insurance must be taken out before the situation that caused the event to be canceled occurs. And you yourself may not decide that the event is cancelled. The decision must be made by an authorized government agency. This can be, for example, the ministry or the mayor of the municipality.
Verzuim insurance
Many companies, organizations and enterprises are struggling with high absenteeism due to coronavirus. It is recommended by specialists to stay home at least for mild symptoms. Perhaps this is not too big a problem for workers with office jobs, but it is for occupations that cannot be performed at home. Think, for example, of healthcare or construction workers. When they end up sitting at home, work is at a standstill.
When staff fall ill and the company incurs high costs as a result, this can be covered by absenteeism insurance. With this insurance, the employer receives compensation for losses incurred due to employee absenteeism.
However, there is a strict requirement attached to this. The complaints must not be minor. For example, if the complaints consist of a runny nose and a slight headache, this is not a reason for reimbursement. Preventive quarantine is also not a reason for reimbursement, despite this being the government's advice. So only with serious complaints such as fever and vomiting is there a right to compensation.
Questions about coronavirus and insurance
It is all too understandable that you are sitting with questions about your company, business or organization about the corona virus at this time. Should you find yourself with pressing questions you can always contact Alpina Insurance. Then we will explain exactly what your options are.
Read also:
The corona crisis and insurance for self-employed people
Freelancers during the corona crisis: Can you prevent financial loss with insurance?
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