Ei group, the UK’s largest group of publicans, has reportedly warned its members that their existing insurance policies will not cover them for loss of business because of coronavirus.
In a letter that was seen by The Guardian, the pub group said: “It has been confirmed that Zurich is not including Covid-19 in its notifiable diseases section.
“As such, any business affected by Covid-19 will not be able to claim for loss of trade.”
The group, which currently owns a portfolio of more than 4,000 UK pubs, has now advised its managers to “consider seeking further cover elsewhere”.
Earlier this month, the government declared coronavirus as a “notifiable disease”, a formal classification required by most insurance policies.
However, the Guardian added that “many of these existing policies cite specific diseases that businesses can claim for”, and that because coronavirus is so new, “it is not included in most of the lists”.
A spokesperson for the Association of British Insurers said: “A small number of businesses may have cover in place that will specifically provide for business interruption arising from notifiable diseases.
“However, this type of extension is not commonly included as standard. Standard business insurance policies are designed and priced to cover standard risks and are therefore unlikely to provide cover for the effects of global pandemics like Covid-19.”