COVID-19: effect on group, expatriate and specialty risk
Aon is carefully following the COVID-19 outbreak in affected countries as it pertains to group, expatriate and specialty risk policies and broader business risk for Canadian organizations. This bulletin addresses areas of concern for employer-sponsored group, expatriate and specialty risk coverage.
Group, Expatriate and Specialty Risk
Events such as the Novel Coronavirus outbreak can trigger exclusions in existing policies that cover:
- Medical, including out of country medical
- Business Accident and Travel
- Medical evacuation
- Short-Term Disability
- Long-Term Disability
- Trip Cancellation
Aon has had discussions with a broad range of carriers to determine where policy limitations or exclusions may come into play with respect to employee travel and/or expatriate needs in affected regions. Carrier positions may be fluid as they react to the quickly evolving global impact of COVID-19. In general, existing policies remain unchanged; however, policy language related to limitations or exclusions may be activated based on Government of Canada travel advisories, assigned Public Health Agency of Canada (PHAC) risk levels and the timing of the travel.
Travelers should be aware of limitations that carriers may place on trip cancellation insurance. Travel to an area where advisories are in effect may be deemed a known risk by insurance carriers and limit or negate coverage availability.
Plan sponsors should be aware of policy limitations/exclusions when making decisions about employee travel or work in areas where travel restrictions are in effect.
We encourage you to monitor key authorities such as the PHAC for up-to-date information on travel health notices, including assigned PHAC travel risk levels, which may activate policy exclusions.
Reach out to your Aon contact if you have questions about how coverage for your traveling or expatriate employees could be affected by the Novel Coronavirus outbreak. For information on broader business continuity risk, please refer to Aon in Canada's COVID-19 Risk Management site.