In light of the COVID-19 measures being taken, businesses should check with their insurance provider to ascertain if their business interruption insurance covers losses.
Market commentary suggests that many businesses are likely to find that they do not have cover as many business interruption insurance policies are either dependent on damage to property or specifically exclude pandemics.
Some businesses may have purchased additional cover relating to notifiable diseases, and others might hold supply chain or denial of access cover, under which claims are likely to be admitted.
Many polices contain strict notification and action provisions and it is important that these are reviewed, understood and followed. Any businesses in doubt should seek advice from their brokers, or legal advice as to the applicability of their policies to the losses suffered by them.