Regardless of whether your business is impacted by COVID-19, insurance companies need to take certain actions at several levels, including the following.

From a regulatory perspective, Article 71 of the Insurance Sector Act requires that Luxembourg insurance and reinsurance undertakings take reasonable steps to ensure continuity and regularity in the performance of their activities, including the development of contingency plans. At this stage of the outbreak, insurance companies are expected to have in place a business continuity plan employing appropriate systems, resources and procedures. Concretely, this involves performing a risk assessment of business agreements and relations having an impact on the continuity of the company's activity (e.g. employees, underwriters, claims handlers, important service providers, etc.).

As regards insurance claims, the coverage of damage caused by COVID-19 will depend on the policy terms and conditions as well as the law governing the insurance contract. Careful attention should be paid to the wording of coverage provisions and exclusions, as well as any public policy-related legislation which may have been adopted in the country of risk.

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