Market Review

07, April, 2020

The ABI released the following statement:

Irrespective of whether or not the Government orders closure of a business, the vast majority of firms won’t have purchased cover that will enable them to claim on their insurance to compensate for their businesses being closed by the Covid-19.

Standard business interruption cover – the type that the majority of businesses purchase – does not include forced closure by authorities as it is intended to respond to physical damage at the property which results in the business being unable to continue to trade.

A small minority of typically larger firms might have purchased an extension to their cover for closure due to any infectious disease. In this instance, an enforced closure could help them make a claim, but this will depend on the precise nature of the cover they have so they should check with their insurer or broker to see if they are covered.”