Business health insurance during coronavirus

Most companies are on the look-out for business health insurance against the novel coronavirus. Coronavirus was declared as a pandemic by the World Health Organization.

The implementation of the precautionary measure of temporary lockdown taken by governments worldwide has resulted in severe economic losses in each sector. But especially to the business world with many businesses going into bankruptcy. Though a regular business health insurance has the means of covering the routine health expenses of the employees and the dependents. Many health insurance company policies do not cover the epidemics of infectious diseases let alone a pandemic.

The main reason for these policies to exclude pandemics is due to a lack of understanding of associated risks. And hence the difficulty in the pricing. Any disease that develops into an epidemic, therefore, has the potential to grow into a pandemic. Of course, this can potentially cost the insurance companies the millions of dollars they are not ready to spend.

In cases where business health insurance was approved

The attached terms and conditions have been so stringent and highly expensive for small firms to even consider. In another turn of events, because businesses aim for protection from business disturbances some firms are ready to even pay high interests for these insurance policies. Policies that can, in turn, lead to insurance companies advocating for business health insurance designed for pandemics.

In conclusion, the business community and the insurance companies will have to act together to make policies. Policies that will benefit both in dealing with situations like the coronavirus pandemic or even other viruses that are possible to come. It is very possible in the future all businesses to have the possibility to purchase pandemic business insurances.

Business Lines of Credit during coronavirus pandemic

Business Lines of Credit: On 11th March 2020, the World Health Organization (WHO) declared the novel coronavirus a pandemic. What started from the city of Wuhan, China has now managed to affect most of the world has spread to now 188 countries of the world.

Due to the severity of the situation, precautionary steps have been taken by most governments. Measurements to implement social distancing and lockdown of various institutions like schools, offices, restaurants or malls.

As a consequence of this, the economy worldwide is suffering from the most impact on the business world. This leading them to take business lines of credit. Businesses like that of retail, hotels, travel, electronics goods including many others seem to be most affected. This is because now the dependent customers are advised to sit at home.

So, in this case, taking business lines of credit is a must for most of these businesses so that they are able to pay their rents, invest in other activities or make payroll as well as preventing employee lay off and full-blown bankruptcy.

Business Lines of credit

have an advantage over loans as the interest rates are low to zero and this mostly depends on the credit score of the business. This means that the interest rates may be high for those businesses that do not have a good credit score along with missing out on better deals and vice versa.

Many industries, especially of small businesses, have seen great reductions in their revenues. And with this, it becomes more difficult for them to draw on business lines of credit.  

Unlike a loan where the credit amount is borrowed all at once, business lines of credit have a preset amount with an option of using the whole amount or just part of it. And this is available at any time without the need for reapplying. This can be compared to using a credit card.