Insurance giant Desjardins introduced new exclusions for liability and property damage claims related to communicable diseases, such as COVID-19.
The exclusions do not apply to all customers. According to the Canadian pressthe Quebec-based insurer has notified affected customers by letter.
With the new exclusions in effect, Canadian press reported that certain Desjardins clients will not be covered if they are sued by someone for spreading a communicable disease. In addition, they cannot claim compensation for decontamination if their property has been affected by a communicable disease.
This is a step that many insurance companies around the world have considered and followed in managing their financial risks related to COVID-19 and any future disease outbreaks.
Ian Lee, an associate professor at Carleton University with a background in insurance, said Canadian press that consumers can expect other similar decisions from insurance companies in the coming months.