London, UK: In another financial blow to businesses from the corona virus, business may not be able to claim for losses incurred by the outbreak, despite the reclassification of the disease as a “notifiable disease”.
Businesses may also have to foot the bill for the extension of statutory sick pay of £94.25 a week to cover coronavirus-related illness and absence from day one, rather than day four, as anounced by the prime minister in parliament on Wednesday.
The Association of British Insurers says most business insurance policies are “unlikely” to cover losses because many policies only cover firms if the virus is found on-site.
Business should check the detail of their policy to see whether they are covered. The ABI said that “it may be possible to buy consequential business interruption cover for notifiable diseases as an extension to a business insurance policy.
“Standard business insurance policies are designed and priced to cover standard risks, not those that are very unlikely, such as the effects of Covid-19,” the association said.
