Insurance

You may not be sure if your insurance covers you for Covid-19 business interruption losses, or you may have been told you can’t claim. We’ve answered your insurance questions below and help you navigate the claims process. Call our free helpline on 08000 862 819 if you need advice.

Back to our Covid-19 Hub.

How likely is it that my business is covered under my insurance for losses due to Covid-19?

How do I make a claim on my insurance for business interruption losses?

What if I don’t have business interruption insurance?

What are the options available to me if my business interruption insurance claim is rejected?

How likely is it that my business is covered under my insurance for losses due to Covid-19?

Answered 26 March 2020

Generally, business interruption cover – usually a section in a commercial combined policy – is sold to compensate for financial losses due to physical damage to property (e.g. in circumstances such as fire and flood, where a business is unable to operate for a period of time).

The Association of British Insurers has confirmed, in a statement published on 17 March 2020, that standard business interruption policies do not generally cover closure forced by the government. This means that most businesses will be uninsured.

Some policies do include ‘restricted access’ cover or ‘non-damage business interruption’ cover. These cover circumstances such as the police cordoning off an area due to an event such as terrorism, a fire, or the risk of a collapsing building. However, again, this is unlikely to cover forced closure due to the Covid-19 outbreak.

Some – but not many – insurance providers also offer extensions to cover for closure caused by an infectious disease. Covid-19 has now been classified as a ‘notifiable disease’, so would now qualify if this cover has been selected.

As always, it’s essential you check the wording of your policies. We’ve provided a useful flowchart to help you work through the process. https://www.hcrlaw.com/wp-content/uploads/2020/04/Coronavirus_Business-Interruption-Losses-Claims-FIN.pdf

In addition, when renewing any policies, it is worth investigating the possibility of adding this. Your broker will be able to advise more fully.

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How do I make a claim on my insurance for business interruption losses?

Answered 1 April 2020

Insurers and brokers tell claimants every day that their claim is not covered by their insurance policy (see question above). You should never take that rejection of your claim at face value. We’ve provided a comprehensive outline of the steps you should take if you want to make a claim, or if you’re unsure if you can claim.

https://www.hcrlaw.com/blog/ten-steps-to-claim-for-business-interruption-losses/

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What if I don’t have business interruption insurance?

Answered 1 April 2020

We’ve provided a couple of alternative ways you might consider in order to recover your losses in our flowchart here:  https://www.hcrlaw.com/wp-content/uploads/2020/04/Coronavirus_Business-Interruption-Losses-Claims-FIN.pdf

The UK government has and will look to intervene by way of subsidies or similar. There are likely to be growing calls to intervene as the outbreak develops. Whatever your situation, the important thing is to focus on implementing guidance provided by Public Health England and the government, with a view to balancing the protection of your workforce with the protection of your business.

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What are the options available to me if my business interruption insurance claim is rejected?

Answered 1 April 2020

We’ve provided some alternative options for recovering your losses in our flowchart here

https://www.hcrlaw.com/wp-content/uploads/2020/04/Coronavirus_Business-Interruption-Losses-Claims-FIN.pdf

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