Important information for businesses affected by Covid-19.

There is a perception currently that businesses may be able to claim on their insurance for any business interruption caused by Covid-19. While that’s a comforting and hopeful thought, sadly for most businesses, it’s not true.

The insurance industry have repeatedly stated that there is no cover for any business affected by Coronavirus during this difficult and challenging period.

However, there is a small chance that you are actually covered in some way, against the effects and consequences of Covid-19 (and the nation’s response to the pandemic), without actually realising it.

There are two specific types of policy extension to your business interruption cover which may cover you in this situation:

 

Infectious Disease Extension

 

A good many policies expressly state which diseases fall into the category of Infectious and Notifiable Diseases. If that applies to your policy, sadly you won’t be covered as Covid-19 is a new disease which your policy pre-exists.

Other policies follow the UK Government’s definition of Infectious and Notifiable Diseases, and as the Government have declared Covid-19 a Notifiable Disease throughout the UK, it could be possible that your business is covered under this fact.

 

Denial of Access Extension (non-damage)

 

Designed to protect your business in the event of you been prevented from accessing your premises by an event or by the actions of authority, your business may be covered by this kind of clause.

With this kind of clause, it’s important to remember that each policy differs according to your circumstances, the insurance provider and policy type, and importantly, in subtle differences in wording.

Across the world, businesses of every size and in every sector are suffering, struggling to stay in business in the most difficult and challenging, uncertain times in our recent history.

 

Could your business be covered by one of these two clauses? Could you have a valid claim after all?

We’d suggest that you firstly speak to your insurance provider and ask them to confirm (in writing only), whether they would consider your claim.

If your insurance provider will consider your claim, then contact us for a free, no-obligation discussion, and find out how our team of experts can help you protect your business from the affects of Covid-19.