Coronavirus: business insurance claims

Coronavirus (COVID-19) was added to the list of notifiable diseases by the government on Wednesday 4 March. This means that you may be eligible to recover losses (from this date onwards) that you incur as a result of the virus from your insurance policy.

Businesses should check with their insurance provider and if they are covered, it's essential to record and evidence any losses incurred from 4 March 2020 for a future claim.

How many businesses are covered?

Many businesses are unlikely to be covered as most business interruption insurance policies are dependent on damage to property, which will exclude pandemics.

Some businesses may have purchased a specific add-on relating to notifiable diseases, but some of these policies will still specify damage to the building. However, businesses may have purchased supply chain or denial of access cover, which may meet their needs in this case.

(Source: updated 17 March 2020)

Latest developments

There has been further clarification from the government and insurance Industry recently, which confirms that businesses with policies including both pandemics and government ordered closures should be covered. This, however, will only be in a minority of cases.

Further information can be found on the Association of British insurers Guide

Please note that this is only a summary of the main issues and should not be construed as advice. Every effort has been made to ensure factual accuracy at the time of publication (23 March 2020), however, the government response to the Coronavirus situation is changing 24-7, so it should not be relied upon completely.

For further information or advice on any of the issues raised, or for help with services like bookkeeping, cash flow management or payroll during the Coronavirus pandemic, please call us on 01225 325580, email or contact your usual client director.