If your business is insured for Business Interruption, including the event of an ‘Infectious Disease’ disrupting business, Coronavirus will not be covered by the policy as it is a new disease.

Insurers’ policies will contain a list of all the potential infectious diseases they are prepared to provide cover against, but Coronavirus will not appear on their lists. All Insurers with this style of policy have therefore confirmed that they would not provide insurance against interruption of the business caused by Coronavirus. Our advice therefore is that you prepare your business for this eventuality.

It is possible that the Government will negotiate with the Association of British Insurers (ABI) to retrospectively include Coronavirus in their lists. If this happens, your Insurer will provide cover for business interruption due to ‘Infectious Disease’. This is limited to a percentage of your overall Business Interruption sum insured, or a set amount anywhere between £25,000 and £100,000.

If you need any more advice in this area, please do not hesitate to contact us on 01384 376964 and we’ll respond to any messages via Facebook at m.me/FolkesWortonLLP as quickly as possible

For more information on Business Planning for Coronavirus (COVID-19) CLICK HERE

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