We are currently receiving a large volume of enquiries regarding Business Interruption cover in light of the current Coronavirus pandemic.
The Association of British Insurers have supplied the following statement in regards to Business Interruption Cover in respect of Coronavirus.
“Irrespective of whether or not the Government orders closure of a business, the vast majority of firms won’t have purchased cover that will enable them to claim on their insurance to compensate for their business being closed due to Coronavirus.
“Standard business interruption cover – the type the majority of business purchase – does not include forced closure by authorities as it is intended to respond to physical damage at the property which results in the business being unable to continue to trade.
“A small minority of typically larger firms might have purchased an extension to their cover for closure due to any infectious disease. In this instance an enforced closure could help them make the claim, but this will depend on the precise nature of the cover they have purchased.”
Unfortunately, cover for infectious disease will typically specify a list of applicable diseases and no insurers include Covid-19 in this list. As this is a new disease, and also the pandemic nature of the virus does not lend itself to an insurable risk and is something that should be handled by HM Government.
HM Government have set out a package of measures to support business effected during this period and we very much hope further assistance is announced shortly.
To read further details about this package of measure and how it can support your business please go to: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
If you have any questions around your specific cover, please do contact us directly and we will discuss these in further detail with you.
ABI Statement on business insurance and Coronavirus: https://www.abi.org.uk/news/news-articles/2020/03/statement-on-business-insurance-and-coronavirus/