Covid 19: Compulsory Closures Insurance Position
Following the advice given by Boris Johnson not to visit pubs, theatres, bars and restaurants to help stem the growth of COVID 19, there have been a lot of comments regarding the insurance cover available.
The general feeling is that if the Government had forced closure, firms could claim off their Business Interruption insurance. This simply isn’t the case.
The reality is that regardless if the Government ordered the closure of businesses, the majority of firms do not have the appropriate cover to claim for a loss of revenue whilst closed. Sector Associates have set up a dedicated team to handle insurance queries for the hospitality industry. Standard Business Interruption cover may have an extension to provide cover where there has been closure from a Medical Officer of Health for the Public Authority as a result of a Notifiable Human Disease occurring at the Premises. The key here is that it has to be at the business premises.
In some instances there may be cover in place for closure following a disease discovered in the local area, but this will depend on the precise nature of the cover purchased, hence why firms need to check their policies.
In addition to this, some Insurers will only cover a predefined list of diseases which will not include Coronavirus as it is new, however, some will cover “Any Notifiable Disease”.
Sector Associates are fully aware of the difficult challenges the hospitality sector are facing and are currently helping businesses understand the cover they have.
If you have any queries relating to your cover or fear you may not be covered, please get in touch with Jamie Jenkinson on 01845 527428 alternatively, you may wish to email us [email protected]