Has your business been disrupted by COVID 19? Have you checked your insurance policy to see whether you are covered for losses where your business is severely disrupted or, in more serious situations, been forced to close?

Unfortunately, some policies will be worded so that they do not cover unknown diseases unless they are specifically named.

However, given the uncertainty surrounding such claims and the many questions that have been asked of the insurers, the Financial Conduct Authority (FCA) took a test case through the courts, which eventually ended up in the Supreme Court. The outcome was that COVID 19 was covered in the “disease clauses” and “prevention and access clauses” of the particular test case.

Now, as with all these things, the outcome will depend on the specific circumstances of each case and the policies in place, and therefore helpfully the FCA have a lot of information on their website. It includes a policy checker, which can be found here https://www.fca.org.uk/firms/business-interruption-insurance/policy-checker  and FAQ’s which may assist in finding out whether a policy may cover COVID 19 disruption.

Businesses also have to remember that if they are successful in making a claim under their insurance policy, there may be tax implications on any monies received that will need to be considered.