Coronavirus and Business Interruption Insurance

Coronavirus and Business Interruption Insurance

It was announced on 4 March that the Government will formally register Covid-19 as “notifiable”.   Although this is good news in some respects, it does not automatically mean that businesses will be able to claim under their business interruption insurance.

Business interruption

Typically, standard property/business interruption policies do not provide coverage as physical damage is usually required as a trigger.

Special covers for business interruption without property damage are available as an extension but are not widespread.  This type of coverage usually requires an outbreak at the premises itself to claim for notifiable disease, as well as a “denial of access” order by public authorities.

Importantly, most insurers specify exactly which notifiable diseases they cover.  It is unlikely that Covid-19 is on this list and so will not be covered.

All policies vary and the situation is changing daily.  If you have any concerns or would like to review your policy, please do get in touch with us.