News

May 1, 2020

If the government orders my business to close because of the coronavirus pandemic, can I make a claim on my business interruption cover?

The current spread of coronavirus – and the precautions being taken by the government to stop it – is completely unprecedented. Business interruption cover is designed to protect you against dangers like fires and floods. Due to the situation (and the virus) being so new, there are very few insurance policies that provide cover for it. Some policies include compulsory closure caused by any notifiable infectious diseases, but the vast majority list the specific diseases they cover, and do not include COVID-19  – please speak with us about this. These clauses also have restrictive inner limits.

If I need to stay at home due to coronavirus and can’t run my business, is my business covered for financial losses?

We know that lots of our customers are currently following government advice to stay at home, to protect themselves and others. It’s crucial that we all follow the latest government advice just now – but we understand this can make running your business very difficult. Because this situation (and the virus) is so new, there are very few insurance policies that cover coronavirus and the unprecedented consequences of the pandemic. This means that self-isolation due to coronavirus won’t be included in your business interruption cover.

A lot of customers are cancelling because of coronavirus and my business is suffering. Can we get compensation for the reduced activity?

We understand that lots of businesses are stopping, reducing and changing their services in response to coronavirus. The experience with this situation (and the virus) is so new, there are very few insurance policies that cover it. Specific event cover is an exception.

We have decided to voluntarily shut our business to protect the welfare of our employees. Are we covered?

There is no cover under your policy in these circumstances because there has been no ‘insured damage’ to property.

My policy refers to action by Public Authorities or Non-Damage Denial of Access, does that mean I’m covered?

Insurer’s policies provide cover where you are ordered not to use or to access your insured premises only following a small number of localised incidents.  As a result, you are not covered for general shut-downs ordered by the government.

A supplier or customer has closed their business as a result of Coronavirus and it has caused our business to suffer losses. Are we covered?

There is no cover under your policy in these circumstances because there has been no ‘insured damage’ to property.