While the current COVID-19 pandemic has emptied city centres, life will eventually get back to normal.
The COVID-19 outbreak is affecting the risk of litigation against Directors and Officers as potential plaintiffs scrutinise the way the board manages the company through the coronavirus crisis. While Asia is yet to see the impact, US courts have received the first securities class actions against company directors and there are set to be more claims once health concerns around the outbreak slow or are contained.
Insurers are facing higher claims in some insurance classes and lower premium in others due to the COVID-19 outbreak and both are likely to have consequences for insurance buyers for example in form of higher premium and the introduction of exclusions.
Many of our real estate sector clients and their tenants will be following Government advice and have arranged for their employees to conduct business from home, rather than at their usual place of work. This is likely to become more widespread as time goes by, with a large number of premises becoming unoccupied or occupied intermittently.
There are many factors to consider before cancelling an event due to the COVID-19 outbreak but ultimately the final decision should be based on what is best for the company and its stakeholders.
Wherever possible, companies are letting employees work from home to help slow the spread of the coronavirus. While this is generally a sensible decision, it adds cyber security risks to the company’s network, requiring staff to shift quickly to a new work routine which specifically addresses additional risk protection.