Crosby Insurance Brokers Highlight Covid-19 Business Interruption Insurance Risks

UK-based Crosby Insurance Brokers is reporting on the state of business interruption cover in response to concerns of businesses affected by Covid-19. They look at how insurance providers are currently handling and likely to handle cases where policyholders seek compensation for Covid-19 related costs.

May 12, 2020 / / —

Crosby Insurance Brokers, a UK-based business insurance broker, has highlighted the ways in which policyholders affected by Covid-19 can expect insurers to respond to any claims related to the virus. The company, which offers a wide range of insurance broker services for business owners, including business liability insurance, fleet insurance, commercial building insurance, and more, specifically addresses businesses that might need interruption cover as a result of Covid-19.

When choosing business interruption cover, clients have three levels of policy to choose from. The first level is a business interruption policy that ensures coverage for a wide range of interruptions but specifically excludes any interruption as a consequence of viruses. The second option available is a policy where viruses and other contagions are specifically mentioned as being insured. However, the viruses and contagions listed on these policies are specific, and, as coronavirus is a new pathogen, it is likely that it won't be on the list.

Lastly, insurance providers offer coverage for any business interruptions caused by viruses that are notifiable by the local authorities and government. At the moment, however, the dispute is that coronavirus is a notifiable virus, while many insurers are taking the view that it is not and are refusing to pay business interruption claims. Now, those insurers may be faced with a class-action lawsuit through the court to settle those claims instead.

In the future, there are concerns that the commercial insurance market will amend their policy wordings to exclude Covid-19 as an insurable peril explicitly. The Financial Conduct Authority looking at insurers to ensure TCF (Treating Customers Fairly) is followed and that the process is fair and transparent, but the commercial insurance market may not be able to accommodate pandemics where the infection rate is high.

Even if insurers agreed to handle the claim for BI the claim will always be subject to what support they had received from Government. As the support may change over the months ahead, insurers cannot begin to look at claims for BI until they know the level of government support over a certain period. In any event, BI policies are typically limited to 12 months or up to a maximum of 36 months covering either loss of profits or loss of revenue, but not both. It's a complex situation as all businesses are different.

Crosby Insurance Brokers will be offering all of their clients up-to-date information and coverage on how the business interruption cover industry is responding to Covid-19. As a business insurance broker, they are aware that many of their clients will be concerned about not just the impact of the coronavirus today, but how their business might be affected by future pandemics of a similar nature.

To learn more about Crosby Insurance Brokers, the services they offer, and to keep up with the latest news and resources regarding the business interruption cover dispute, visit their website at https://www.crosbyinsurance.co.uk.

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Notes for the editor: Please direct any press inquiries to Stan Crosby, who can be found at Crosby Insurance Broker’s headquarters at 9 Kenton Lane, Kenton, Newcastle upon Tyne, NE3 3BQ. You can also call Mr. Crosby on 0191 5657590. All email inquiries can be sent directly to [email protected] and further information can be found at the Crosby Insurance website: https://www.crosbyinsurance.co.uk.

Contact Info:
Name: Stan Crosby
Email: Send Email
Organization: Crosby Insurance Brokers
Address: 9 Kenton Lane, Kenton, Newcastle upon Tyne, NE3 3BQ
Phone: 0191 5657590
Website: https://www.crosbyinsurance.co.uk

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Release ID: 88957065