-
Loss of revenue triggered by the spread of new viruses are generally excluded because they cannot be properly quantified at point of sale. This is because such an event would cause solvency issues for insurers.
This point was made a few days ago by the guy who set up London Union, when the hospitality industry was claiming that the government's failure to mandate closure meant they couldn't claim. And he was right, most policies would cover the loss of revenue from closure, just not for Covid-19.
I did the figures yesterday and can keep paying 20 staff for up to 3 months, or 5 if I run the cash right down, but that would give me no breathing space to build things back up if/when we reopen. I may have the agreement of my landlord (the council) to skip the rent for a quarter, which would stretch things a bit further, but I'm really worried for people who will struggle to find work even in the long run. As a social enterprise, we employ and train people who are not going to be successful in a competitive job market.
You are reading a single comment by @marcomarcos and its replies.
Click here to read the full conversation.
Markyboy
@marcomarcos
The insurance policy is fine, it just wasn’t designed to cover a Covid19 type scenario. The Government know this but continue to push out misinformation.
Loss of revenue triggered by the spread of new viruses are generally excluded because they cannot be properly quantified at point of sale. This is because such an event would cause solvency issues for insurers.
I can’t answer your conundrum I’m afraid other than to say it’s unlikely the vast majority of business interruption insurance policies will respond.