A recent court ruling has shown that most business interruption insurance claims should be successful where policies had “pandemic” or “notifiable disease” clauses.
The vast majority of business interruption insurance policies held by small or medium-sized enterprises (SMEs) will not include cover for business losses caused by a pandemic, as it will be listed as an exclusion.
In a very small number of cases in which an SME has purchased a business interruption insurance policy with additional cover for a “notifiable disease”, and no pandemic exclusion, can that SME be covered now that the government has certified COVID-19 as a notifiable disease.
The terms and conditions of insurance policies can differ significantly, so SMEs should check their specific policy and contact their provider if in any doubt.
Blaser Mills Law has outlined in one handy article:
- What is a Business Interruption clause and why is it important?
- How do you know if you are covered?
- What should you do if your claim is rejected?
- Coordinated legal action