Washington Policyholder Notice Regarding Business Interruption Coverage
As you know, AXA XL’s insurance coverages and terms and conditions are tailored to meet the most complex insurance needs of individual clients. So, we are unable to provide specific advice here on claims or coverage. For your general knowledge, however, and as required by the Washington State Office of the Insurance Commissioner, we are including short summaries of certain types of coverage:
1. Business Interruption Coverage: Coverage is provided for the actual loss of Business Income sustained due to the suspension of your operations caused by or resulting from direct physical loss or damage by an insured cause of loss. The purpose is to replace what the business would have financially received had the loss not occurred. For certain policies certain coverage is extended by means of an Infectious Disease extension. 2. Civil Authority Coverage: extends the business income and extra expense coverage to cover a loss that is caused by the action of civil authority that prohibits access to covered premises due to direct physical loss or damage to third party property in the vicinity of our policyholder which prevents our insured from operating at the covered premises. The loss must be caused by or resulting from an insured cause of loss. Coverage is typically provided with a separate sub-limit and waiting period. 3. Contingent Business Interruption Coverage: Provides coverage for loss of Business Income or Extra Expense due to the physical loss or damage by an insured cause of loss, covered under our insured’s policy, at a supplier or customer of our insured. Named suppliers/customers and unnamed suppliers/customers may have different sub-limits. 4. Supply Chain Coverage: Coverage is provided for the loss of Business Income or Extra Expense due to the physical loss or damage by an insured cause of loss, covered under our insured’s policy, at a supplier of products or services to our insured.
It is important to understand that determining whether there is coverage for a COVID-19 related loss would be based on the facts of an actual claim and the terms and conditions of the particular policy we issued to you. As a result, this letter does not address how the terms, conditions and limitations of your policy might apply to an actual COVID-19 loss.
"AXA XL” is a brand name referring to the global commercial insurance division of AXA, S.A., a French holding company that is the ultimate parent company for the following entities, which are licensed or authorized in Washington State: Greenwich Insurance Company; T.H.E. Insurance Company, Catlin Insurance Company, Inc.; XL Specialty Insurance Company; XL Insurance America, Inc.; Indian Harbor Insurance Company and, AXA Insurance Company.