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‘Vast majority’ of firms not insured from virus, says ABI

The Association of British Insurers (ABI) has today issued a statement on the closure of businesses and the impact of coronavirus.

The association told its members that “the vast majority” of firms won’t have purchased cover that will enable them to claim on their insurance amid the outbreak.  

It warned that such businesses would therefore not be able to compensate for business closures as the pandemic spreads, “irrespective of whether or not the government orders closure of a business”. 

In a statement, ABI said: “Standard business interruption cover – the type the majority of businesses purchase – does not include forced closure by authorities, as it is intended to respond to physical damage at the property which results in the business being unable to continue trading.”

It added: “A small minority of typically larger firms might have purchased an extension for their cover for closure due to any infectious disease.

“In this instance, an enforced closure could help them make a claim, but this will depend on the precise nature of the cover they have purchased, so they should check with their insurer or broker to see if they are covered.”

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