During these worrying times, the amount of business interruption claims enquiries to insurers has skyrocketed! But many business are being told that they are not covered on their insurance policy. In most cases you can claim on your business interruption insurance for several reasons such as:
- Natural disaster
- Other circumstances that stop your work premises temporarily unusable
This is all dependent on the wording of your policy.
Whilst most policies will fix the damage, they rarely take into account financial implications faced by your company.
COVID-19 and Business Interruption Claims
In recent months COVID-19 has swept the world. It is a time of uncertainty for a lot of companies big and small.
On the 17th March 2020 the government reached an agreement with the insurance industry. They agreed that if the insured policy is designed to respond when the business has been obligated to shut. This is instead of advice to shut.
Although most people their business interruption policy will not cover COVID-19.
Depending on your policy wording you may not be covered. However, there’s a chance that your current insurance policy does protect your business from the consequences of COVID-19 and Coronavirus. You maybe covered and not even realise it.
There are two different policy extensions that may cover you for this situation.
Denial of Access Extension (non-damage)
You may be covered if you are prohibited from gain access to your property. By an event or action from the authority, this would cause your business interruption cover to fall in to affect. If this Is the case, then there is often a difference in wording.
However, this depends on the insurer or your policy. Because of this you might be covered but it will depend on your policy and your circumstances.
Infectious Disease Extension
Many policies covering infectious diseases will expressly state which diseases fall in the realm of being infectious or notifiable disease. If this is the case your policy will not cover COVID-19 as it is a new disease.
Other policies will define the disease with actions of the government. Due to the UK Government naming COVID-19 as a notifiable disease, it is possible that you fall into this definition. Therefore will be able to claim.
Another reason you may be able to claim if the disease is on your premises. Also if the disease is in a specified radius from your premises.
What Should You Consider When Making A Business Interruption Claim?
When considering making a business interruption claim there are some important things to note. Firstly, you should think about if there is any legal compensation available to you and your business. You should also consider if your policy wording includes:
Does your policy include cover for Notifiable Disease and/or Denial of Access? These are the two most common extensions for business interruption. From this you should also consider if the cover limited is range such as a specific disease. Or even if the disease has been found in the insured premises.
You should additionally take note of the period of interruption and the sum that you have insured.… Continue Reading