If you have cover for pandemics or government ordered closure, your insurers should cover your business – the government and insurance industry confirmed on 17 March that advice to avoid pubs, theatres etc. is sufficient to make a claim.
Your insurer will be able to advise you on whether your policy includes cover for business interruption and whether disease outbreaks, like coronavirus, are included in your policy.
We have been informed that some businesses are receiving conflicting information. The below answer comes from ABI regarding standard interruption insurance:
Does standard business interruption insurance provide cover for businesses who are not able to operate due to the effects of Covid-19?
- Standard business insurance policies are designed and priced to cover standard risks and are therefore very unlikely to provide cover for the effects of global pandemics like Covid-19. This includes forced closure by the authorities. Businesses may have chosen to purchase cover that will specifically provide for business interruption arising from notifiable or infectious diseases. For certain notifiable disease extensions cover may apply if other policy conditions are met. However, this type of extension is not commonly included as standard. Furthermore, the likely costs to businesses of cover that would include more unusual risks – such as those posed by new diseases – would be prohibitive.
- Businesses who are concerned about the impacts of Covid-19 should check the scope of their cover, and check with their insurance adviser or broker.