Many businesses are understandably concerned about having to close their doors following an outbreak of Coronavirus amongst their staff or at their premises.
If you have business interruption insurance in place under your business insurance policy then there are 2 extensions within the business interruption section that need to be reviewed:
1) Prevention of Access. This extension involves closure of the premises by any action of Government Police or Local Authority due to an emergency which could endanger human life or neighbouring property.
Some wordings however do exclude an outbreak of infectious disease under this extension, as it is dealt with by a more specific cover, which is mentioned below.
2) Notifiable Diseases. This relates to a loss of income following illness sustained from an infectious disease at the premises, an outbreak of which the competent Local Authority has stipulated shall be notified to them.
Many insurers however have restricted the cover offered by this extension in view of the capacity for catastrophic losses cause by a global pandemic. Their extension is on a specified illnesses basis only, an outbreak of which is deemed notifiable to a competent Local Authority.
Their policy wording has a list of illnesses that are covered. Coronavirus or Co-Vid 19 is not mentioned on the list of specified illness that are covered and hence is not insured.
Some of the largest insurers in the market restrict their cover to the specified illness basis so many policyholders will need to brace themselves for bad news when investigating their cover.
Should you have any further questions please contact us on 01934 522252.