Business Protection (CUP) FAQ

The following information is provided as a general reference to assist you in answering the most common questions regarding coronavirus (COVID-19) and specific products. It is not intended to be all-inclusive, but it is designed to provide general information on the most frequently asked questions.

Risk Background

The coronavirus (COVID-19) has quickly spread globally. Increased headlines and social media posts about growing COVID-19 infections have many credit unions concerned about their ability to continue critical operations while ensuring employee/member safety. Credit union leadership should remain committed to emergency preparedness and business continuity planning. A pandemic crisis can create confusion and potential panic among employees and even leadership.

For the latest information about symptoms, prevention, treatment and other facts, visit the Centers for Disease Control and Prevention (CDC)(opens in a new window) website, the World Health Organization (WHO)(opens in a new window) website, local, state, and federal governments.

Last updated: Thursday, March 26, 2020

To best respond to credit union risk-related questions about workplace hygiene practices, sick leave, working remotely, children in the workplace, etc., refer to these resources and alerts prepared by CUNA Mutual Group’s Risk & Compliance Solutions.

The outbreak of COVID-19 disease is an evolving situation, which health officials continue to investigate on an ongoing basis. To help credit unions with frequently asked questions, reference these resources within the Protection Resource Center (User ID/Password required) to better understand key risk considerations and mitigation tips:

To address specific risks or concerns, encourage credit unions to schedule a virtual risk consultation with a CUNA Mutual Group Risk Consultant at 800.637.2676,, or through online consult scheduling.

Are any protective measures a credit union takes (extra cleaning, spraying, etc.) to prevent the spread of COVID-19 covered by property insurance?

While it is great when a credit union takes proactive measures to protect their employees and members; these proactive measures are credit union business decisions that are not covered by the property coverages.

Does property or business Interruption coverage provide coverage for a pandemic?

  • Property and Extra Expense coverages carried by credit unions require a direct physical loss or damage from a covered cause of loss. Unfortunately, an office closure, temporary relocation, etc. due to the COVID-19 would not meet that requirement. Additionally, CUNA Mutual Group has not found an admitted market policy that would provide property or business interruption cover for a pandemic loss.
  • Life and health insurance will see the most loss activity from a pandemic. The key to addressing any infectious disease is a flexible continuity plan that considers the issues associated with a pandemic as well as all other types of disaster and recovery.

Can our credit union increase the Fidelity Bond’s On Premises Coverage Limits to $X?

  • Effective March 19, we are automatically increasing the On Premises limits for our Bond Policyholders by $500,000. This increase is effective until Monday, May 18, 2020, 11:59:59 pm, at which time it will revert back to your current limits. This increase is provided at no charge and without any change in deductible. (No action required by Bond Policyholders. New temporary declaration pages will not be provided.)
  • If you need a higher limit, please contact your P&C Consultant or Account Executive. Please understand that we will underwrite these larger requests based on your safes/vault’s ratings and physical security. Increased limits may be subject to an increased deductible.
  • Refer to the Currency & Vault Specifications in the Protection Resource Center for additional guidance.

Can our credit union increase the Fidelity Bond’s ATM Off Premises Coverage Limits to $X?

The ATM Off Premises limit is $200,000. This limit cannot be increased.

What if we are sued because we purportedly didn’t properly prepare for the virus?

As you know, anybody can sue anyone for any reason. This means you can do everything right and still face a lawsuit. Our Credit Union Protection policies do not have any pandemic or COVID-19 exclusion. Coverage would be determined based on the specifics of the lawsuit and the terms and conditions of the policy involved.

With a number of court houses closed across the country, my title company is unable to determine recent filing activity. They now sent me an addendum saying I must hold them harmless. Should I sign it?

  • It’s not a good idea to sign the addendum because you won’t be able to sell mortgages to secondary markets (Fannie, Freddy, etc.). If there is an issue with the title, you will be responsible as you have signed away your legal rights regarding your title insurance. No other coverage will take its place.
  • Fannie Mae issued a letter the week of March 23, which covers this topic.
  • You may want to consider finding a title company that isn’t requiring you to sign a hold harmless agreement/addendum.
  • You should consult with your legal counsel.

How will workers compensation coverage respond should employees be impacted by the virus and claim work-related exposure?

  • COVID-19 has been deemed as recordable by OSHA but this does not mean it is a work-related illness. The Workers Compensation carriers (including the Hartford) have communicated that each case will be managed on its’ medical merits and generally will not be accepting claims of illness due to community exposure. Coverage will depend on the facts of how the virus was contracted and it will be difficult to prove that the virus was contracted in the scope of employment.
  • For example, an employee will have to prove that the virus was contracted at work rather than a retail store, a family gathering, a high school basketball game, a plane, etc.
  • We are early in the stages of this discussion and therefore cannot clearly state how the Workers Compensation claims will evolve from a work-related illness or scope of duties perspective. We continue to monitor this exposure.

I have questions regarding my Hartford Workers Compensation policy, where can I find more information?

  • The Hartford sent this communication to Workers Compensation policyholders the week of March 23, 2020.
  • In this communication, you will learn that The Hartford will help personal and commercial lines customers who are having financial difficulty because of COVID-19. The Hartford will be suspending cancellations for non-payment until May 1, 2020, and will not be assessing late fees for premiums due on or before May 1, 2020. Please contact The Hartford with any questions. Contact information is provided in the communication.

Who should I contact for questions related to managing risk?

To address specific risks, concerns, questions, or to locate relevant resources; contact a CUNA Mutual Group Risk Consultant at 800.637.2676,, Ask a Risk Consultant form, or schedule a virtual risk consultation through our online scheduling.

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CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates.