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Credit Union Times
JUNE 10, 2020 | VOL. 31 | NO. 11 | CUTIMES.COM
Pandemic Brings LiabilitiesIt is still unclear whether employers will be held liablefor workers’ compensationclaims associated with COVID- 19. At the same time, supplychain issues are already threatening business interruption.
It is no longer a question of ifCOVID- 19 will become a business issue, but how to preventit from becoming a significantone, and which aspects of an organization will be most affected.From worker’s compensationclaims to supply chain interruption, businesses have more questions than there are answers. Thefollowing is an attempt to at leastanswer some of those questions.
When Is COVID- 19 a
Generally, when an employeecatches the flu from someoneat work, it is not covered underworkers compensation insurance. Those claims have beenfound not to be compensableand were denied. However, inthe case of COVID- 19, the answer is not very clear.
Instead, if an employee testspositive for COVID- 19 – regardless of how they caught the virus– and/or if an employee causesthe virus to spread among yourstaff and employees, your organization needs to file a worker’scompensation (WC) claim onbehalf of all infected workers.
In order for the claim to be cov-
ered, the employee(s) Y16
hen the corona-
hit and the gov-
to pass out money to fend off a
looming economic crisis, those
with the knowledge and con-
nections to get someone on the
phone who could get the funds
did so. Big corporations quickly
swooped in, pocketing millions
while small business owners and
entrepreneurs were still rum-
maging around looking for their
financial institution’s phone
As the initial shock of the
passed, a lot of consumers who
may have never given much
thought to those branches labeled
as “credit unions” suddenly took
Phones started ringing, online
banking business shot up and a
new generation of credit union
members was born.
Credit unions across the country have stepped up to help theircommunities, as well as offer newprograms, emergency assistanceand – in many cases – teach longtime members a whole new set ofbanking skills to help them dealwith a new reality.
To get a sense of how thingsplayed out for smaller and mid-sized operations, CU Times spokewith executives from two
Smaller CUs Respond to COVID- 19
Make it standard atyour CU. Y14
Both are importantto lending. Y12
s everyone hopes for
the best as business-
es gradually reopen
under the clouds of
in the webinar
CU Times Editor-
Ogden were David
dent/CEO of the
$550 million 121
Union in Jack-
sonville, Fla., and
vice president of
ment at the $324 million Heart-
land Credit Union in Madison,
Both Wisconsin and Floridahave drawn national and industryattention amid the coronaviruscrisis.
Wisconsin captured nationalheadlines when the state’s Y18
The unprecedentedCOVID- 19 crisis has ledto an unprecedentedsurge in mortgagerefinancing. Find outhow CUs are respondingto the refi boom andother new real estatemarket trends in thisFocus Report. Y6