After the unpredictability of last year, you may be keen to make sure your business is better protected for 2021. The pandemic has created new challenges for business worldwide; if you are one of the thousands of businesses not insured due to the COVID-19 closures, maybe it is the perfect time to review your insurance requirements.

Business interruption insurance is coverage that replaces the loss of income if a business cannot open or run due to physical loss or damage, such as a fire or flood. They usually only pay out if physical damage occurs to an organization's assets or operations. This means that many COVID-19 related claims may not be covered by the vast majority of insurers. Many policyholders whose businesses were affected by the pandemic have suffered significant losses which have resulted in a large number of claims.

The Financial Conduct Authority (FCA) decided to select a representative sample of insurance policies and appealed to the Supreme Court on behalf of policyholders. On Friday 15th January 2021, the Supreme Court announced that it would accept the FCA's appeal. This means many thousands of policyholders will now have their claims for coronavirus-related business interruption losses paid. However, we need to point out that many other businesses still do not have cover. Full details can be found here: https://www.fca.org.uk/news/press-releases/supreme-court-judgment-business-interruption-insurance-test-case.         

It is also worth noting that all policies now exclude COVID-19 and other diseases caused by any mutation or variant of COVID-19. Coronavirus exclusion is now standard on most policies, and wording will be similar to the below.

Your Insurance Policy does not cover any claim in any way caused by or resulting from:

a) Coronavirus disease (COVID-19)- the disease caused by SARS-CoV-2

b) Other disease caused by any mutation or variant of SARS-CoV-2

c) Any novel infectious disease caused by a newly identified agent

d) A threat, fear or likelihood of infection from any of the above or measures taken to prevent the spread of any of the above.

This includes quarantine claims, whether self-imposed, recommended by a medical professional or imposed by government or public authority.

COVID-19 has highlighted more than ever your business needs to be fully protected. LIFT-Insurance can give you a free technical audit of your insurance policies.

We can help ensure that:

•             Your business is adequately protected should an incident occur

•             Any potential gaps in your current policies are identified

•             The premiums you are paying are the most competitive in the market

•             Excessive commissions are not being earned by your current provider

 

Please get in touch, so we can help you protect your business in 2021.