Coronavirus Insurer Update - 19th March
We wanted to provide an update as the situation has evolved. As before this is the position as it currently stands and may be subject to change.
Government Comments and Assistance
One of the most asked questions following their statements, particularly from the leisure industry, has been “Do I have business interruption cover if the government force closure?”. Currently, the answer in the main is no, which is explained by the ABI’s comments as follows:
We appreciate that this will continue to not be well received by clients, but as we know if insurers were to pay out then there would be none left, which is why the market shifted in the main to remove cover following the 2002 – 2004 SARS outbreak. However, the government have announced various measures to help support businesses which were extended on 17th March. Details that are currently available are on the UK Government website here and here, with the implementation likely to be next week. It is worthwhile sharing this with your clients that aren’t aware if you haven’t already. Some of the details include:
Business Interruption Loan Scheme of up to £5m with 6 months interest-free
Retail, hospitality and leisure businesses with rateable value of less than £51k will not pay any business rates this year. They can also receive a £25k cash grant per business. Business rate holidays for those with a rateable value of higher than £51k for 2020 to 2021 tax year
£10k cash grant for smallest businesses
There is also an additional £3.5bn to assist business in devolved powers including Scotland and Wales. For more information on support for businesses from the Scottish Government please visit here and for the Welsh Government please visit here, as well as checking for updates from their main pages.
If you would like advice on how to protect your business, employees or have questions about your cover - please contact us on 01273 789 979