Business Interruption Insurance – are you covered?

On Monday 23rd March 2020 the Prime Minister, Boris Johnson, announced that all non-essential businesses should close their doors in a bid to fight the spread of Covid-19. This has led to business owners reviewing their insurance policies to assess whether or not they will be able to make a claim on their policies as a result of this interruption to their business.

Unfortunately, many business owners have come to the conclusion that the terms of their insurance policy do not provide cover for losses incurred as a result of Covid-19. It is not always black or white, however, as to whether or not it is possible to make a claim on your policy. Your policy may contain certain clauses which may be open to interpretation. For example, Denial of Access, Human Diseases and/or Property Damage clauses will almost always clearly define what is covered but this will not always be the case.

One clause which will almost certainly create debate will be the one referring to notifiable diseases. It is almost certain that Covid-19 will not be defined anywhere in your policy as its existence would have been unknown at the time the policy was taken out. On 5 March 2020, legislation was passed which added Covid-19 to the list of notifiable diseases. The wording of your policy in relation to this point will be crucial.

Each insurance policy and insurance company will differ. Each policy will have its own nuances, terms, conditions and technicalities which can give rise to different interpretations. If you are unsure whether you are able to make a claim under your insurance policy, please contact us and we will review your policy and guide you through the next steps. Contact our partner, Andrew Morrow, at andrew.morrow@mtb-law.co.uk for immediate advice.