Many business interruption insurance policies are dependent on damage to property, which will exclude pandemics. Some businesses may have purchased supply chain or denial of access cover which may meet their needs in this case.
The Chancellor announced on 17 March 2020 that the measures that have been introduced regarding pubs, clubs, restaurants and theatres, are enough to allow insurers to pay out under Business Interruption clauses. This will be a welcome relief to many businesses where the insurers who would not pay out until a ‘ban’ was in place. We recommend that our clients review all relevant insurance policies to see if they are now covered.
On the evening of 17 March 2020, Steve Barclay MP has made a House of Commons announcement that the changes to the private sector have been deferred for one year until 2021, in response to the Coronavirus pandemic.
The Government is due to amend the legislation and we will confirm any further details at this point.