Business Interruption due to the Covid 19 Virus Insurance Claim Update
Most businesses will not be covered for business interruption due to COVID-19, but there is a small chance that you may be, find out more below.
There is a perception that struggling businesses will be able to claim on their business interruption insurance for business interruption claims due to Coronavirus (COVID-19).
For most, this is wrong. In fact, the vast majority of policies do not cover anything related to COVID-19.
The insurance industry has already been extremely vocal that there is no cover for any coronavirus-hit businesses during this tough financial period.
However, You may be covered, but not know it.
It is not absolutely certain that you will not be covered, there is a small chance that your current cover already protects your business against the consequences of coronavirus, and the nationwide response to it – though those with this cover may not realise it.
There are two types of policy extensions to your business interruption cover that can potentially cover you for this situation:
- Infectious Disease Extension
Many policies expressly state which diseases fall within the realm of being an infectious or notifiable disease. If this is the case, your policy will not provide cover. Being a new disease, when the policy was written, COVID-19 will not have been included.
Other policies will define the disease with reference to the actions of the government. Since the UK Government has named COVID-19 as a notifiable disease throughout the UK, it is possible you may fall into this definition, and be able to make a claim.
Many policies require the disease to be on your premises, others specify a radius from your premises.
- Denial of Access Extension (non-damage)
This may cover you if you are prevented from accessing your property by an event, or by the actions of a competent authority, thus causing your business interruption cover to engage.
In this clause, there are often very subtle differences in wording, depending on the insurer or policy. You may be covered, but it will depend on your particular circumstances and the specific policy wording.
People throughout the world are understandably facing all kinds of worries because of the current pandemic. If you own a business and are unsure about whether you can claim for business interruption we suggest –
You speak to your broker or preferably your insurance company directly and get them to put in writing whether they will consider a claim or not.
We stress this should be in writing not a verbal reply from a call centre or such like.
If there is a possibility that your insurer will consider a claim then please feel free to contact us for a further no-obligation discussion as we may be able to assist you with the preparation of your claim.
Martin Curran & Associates tel 01772 682636 or 07884188846 email email@example.com