Coronavirus and Insurance

Insurers forced to cover coronavirus business interruption

We have been told by a leading insurance agent to the hospitality sector that due to the enforced shutdown of Pubs and Bars that they will be forced to cover the costs as interruption of trade, where previously “Pandemics” had been excluded.

Pressure has been exerted on the insurance industry as a whole by the Government to aid businesses covering their fixed costs at a time of deepest need. The government’s COVID-19: support for businesses web page says:

Businesses that have cover for both pandemics and government-ordered closure should be covered, as the government and insurance industry confirmed on 17 March 2020 that advice to avoid pubs, theatres etc is sufficient to make a claim as long as all other terms and conditions are met.

Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. Most businesses are unlikely to be covered, as standard business interruption insurance policies are dependent on damage to property and will exclude pandemics.”

This is something that should help cover costs of rent, utility bills and such like.