After increasing pressure from businesses, the government have announced that the coronavirus will be classified as a notifiable disease. Insurance policies typically require that level of classification to cover business losses. But advice from the Association of British Insurers (ABI) warns that the reclassification still might not allow businesses to claim. In a statement on the ABI website a spokesperson said, “Standard business insurance policies are designed and priced to cover standard risks, not those that are very unlikely, such as the effects of Covid-19.”
The statement goes on to say, “It may be possible to buy consequential business interruption cover for notifiable diseases as an extension to a business insurance policy, subject to any policy terms and conditions”. Businesses are advised to check the scope of their insurance policies and speak to their insurance adviser if they are likely to be impacted.
Businesses should also be considering the potential impact that the coronavirus could have on their operations and act now to mitigate any risks. The latest information and guidance can be found here.