Cover in standard insurance policies is usually triggered by damage to property and so in the majority of cases insurers are unlikely to be obliged to pay out in relation to a pandemic. However could the presence of a virus constitute damage?
In other cases a policy wording covers the insured’s inability to use the premises as a consequence of a government order following the occurrence of a notifiable disease at the premises or nearby, known as non-damage denial of access. Could such an extension apply?
Whether there is cover or not will depend on a number of factors though in all cases the specific wording of the policy is key. The range of wordings and types of coverage are sufficiently broad in the business interruption market that it is difficult to determine at a general level the degree to which any policyholder may be able to claim.
According to the Interim Chief Executive of the F C A, they believe that there are a number of policies where the insurer has an obligation to pay out and so we at Schofield Insurance Brokers would be happy to refer any potential claim to the insurer concerned on your behalf and offer support where we can.
If you have any queries regarding your own policy coverage please do not hesitate to contact either your own account executive on their usual number or the claims team on 0113 250 0377.