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: Monday, July 20, 2020

Various states have directed all insurers to make sure our policyholders know that we will not cancel policies during this pandemic, for failure to pay premium, until we’ve allowed at least a 90-day grace period from the premium due date. In addition to these state directives, we are committed to supporting you through these difficult times as you look to meet your own new state requirements due to COVID-19. We always work with our policyholders, so if you need assistance with pandemic-related challenges, please contact your P&C Consultant or Account Executive. We are committed to answering your questions and providing flexibility that helps ease the burden on our policyholders.

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.

We are looking to thoroughly clean our credit union before reopening. Can you recommend a cleaning company?

  • CUNA Mutual Group has a contract with SERVPRO, who provides residential and commercial restoration services. SERVPRO can clean and disinfect your credit union according to the protocols set forth by the CDC. View this brochure(opens a PDF in a new window) to learn more.
  • Policyholders with Property and Business Liability policies have access through a national agreement with SERVPRO.
  • You can contact SERVPRO by calling 1-800-SERVPRO.
  • Note: CUNA Mutual Group has contracted with ServPro as our preferred provider for cleaning services. ServPro is not a CUNA Mutual Group company, and policyholders are not required to use their services. The alliance is intended to enhance our customer service and provide easy access to a cleaning service for our insureds

We have employees that are working permanently from home now. How does this impact my property & liability coverages, as well as my workers compensation coverage?

  • Your Property and Business Liability policy automatically extends certain coverages to employees’ home offices.
    • Business Liability contains broad language that extends coverage for your employees working from home.
    • Business Personal Property and Data Processing Equipment provides coverage for credit union owned property located in your employees’ homes.
  • If your employees’ home offices are located in state(s) that are scheduled on your Workers Compensation policy, coverage is automatically extended. If not, you will need to add the employee’s home office to your policy. The carrier may charge additional premium at the time location is added or may adjust with the audit. Please reach out to your CUNA Mutual Group Account team should you need to add the employee’s home office to your Workers Compensation Policy.

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 July 1, 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.

Our assets increased overnight because of the CARES Act Stimulus checks. I don’t know how long our assets will stay at this higher level. Do I need to increase my bond limit?

If you carried the limit required by your regulator when your Bond renewed, or after a merger/acquisition in which the acquired entity exceeded 35% of your assets you do not need to increase your Employee or Director Dishonesty limit. Your CUMIS bond policy contains a provision, called Limit Guard, which allows for short term increased limit needs.

We do not allow members to wear masks in our lobby. Given the current situation, what is the impact if we deny access to a member?

We recommend you do not deny entrance to a person wearing a mask during the pandemic. Your coverage is not impacted if a person is wearing a mask.

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

As with any lawsuit, coverage will be determined based on the specifics of the lawsuit and the terms and conditions of the policy involved.

Will you be refunding or crediting premium for our Business Auto policy, similar to what personal line auto insurers are doing?

Yes, we are issuing a premium refund to most of our Business Auto Policyholders. The refund will be 20% or $10 per month, whichever is greater, of your Business Auto premium (excluding the Repossessed Auto premium) earned during March, April and May 2020. Refund checks will be sent over the next few weeks, beginning June 15. (If your Business Auto policy only provides Repossessed Auto coverage, you are not due a refund.)

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.

If our credit union allows a member to skip a payment during the COVID-19 events, does it affect their Collateral Protection Blanket Physical Damage - Auto coverage?

  • One of the conditions for Blanket Physical Damage is there has been no payment to principal for 90 days. However, we do subtract any payments that are more than 120 days past due as of the date the claim is reported to us. Therefore, if the credit union allows skipping of payments, it may cause a reduced claim payment, depending on how may skipped payments are allowed.
  • For Skip coverage (Confiscation, Conversion, Secretion or Embezzlement), the Skip claim must be reported to us within 180 days of the last payment to principal. If it isn’t, the Skip claim is denied. So, there could be impact to the credit union if they allow multiple missed payments when it comes to the Skip coverage.

As a result of COVID-19, my state enacted state-of-emergency statutes that prohibit financial institutions from repossessing vehicles. What does this mean when it comes to my Collateral Protection Blanket Physical Damage coverage? (As of April 10, 2020, we are only aware of IL, MA, SC enacting such a state-of-emergency.)

For loans in which the last-payment-to-principal is between 9/10/2019 and the expiration of the respective states’ state-of-emergency period, we are providing the following claim settlement relief:

  • For Blanket Physical Damage, we will not subtract loan payments on the damaged or stolen property that are more than 120 days past due as of the date the claim is reported to us when determining the loss settlement (claim).
  • For Skip coverage (Confiscation, Conversion, Secretion or Embezzlement), we will not require that the claim be reported to us within 180 days of the last payment to principal.

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. View this article for the most current information including updated dates. Please contact The Hartford with any questions. Contact information is provided in the communication.
  • Some states are enacting emergency rules, amendments, or acts pertaining to Workers Compensation. M3 provides this state specific resource.

Is Beazley suspending cancellation for non-payment of premium for their Cyber Liability policy during the pandemic?

Yes, Beazley is suspending cancellation for non-payment of premium until May 23, 2020.

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.