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COVID 19- Insurance Update

COVID 19- Insurance Update

24th March 2020

The Government has recently announced unprecedented measures to restrict and contain the spread of COVID-19.

These measures have resulted in fundamental changes to the traditional mediums for social and business interaction.

The closure of restaurants, bars, clubs, theatres, cinemas, gyms and many open spaces is an immediate bar to the fundamentals of living within a democratic society, but it is, as the Government has outlined, essential to limit the impact on the NHS and afford some much needed time to respond to the crisis.

The Government has, at the same time, announced a multi-billion pound financial scheme to attempt to limit the impact on the economy, and in particular, the hospitality, leisure and tourism industry. Those relief packages and measures can be found here.

Who else will this impact?

Whilst the Government focus is on businesses and the retention of employees, Covid-19 will impact not only businesses but private individuals, charities and the like.

The position of the Government is clear - certain sectors of business are to be closed down and individuals are only to attend work if absolutely necessary.

Those impacted will be hoping to make claims on their insurance policies but many will be unsure whether their policy will provide coverage, on what basis to seek coverage, and whether they should seek coverage at all.

There are and will remain obstacles to coverage. Accordingly, individuals and businesses will require specialist advice regarding the issue of notices to insurers.

It is clear that the Government and the Financial Conduct Authority are urging insurers to be wary of not providing coverage and in these uncertain times to apply principles of fairness and understanding.

If you are a business or individual and require assistance with preparing an appropriately worded notification and/or general advice on your claim then do not hesitate to get in contact.

Daniel Glover

Relevant Guidance:

1. FCA

https://www.fca.org.uk/news/press-releases/fca-sets-out-expectations-general-insurance-firms-during-coronavirus-covid-19-pandemic

2. Government

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19

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