Coronavirus: What will my business insurance policies cover?

Coronavirus is already having a widespread effect on the day-to-day running of businesses of all sectors and sizes. As the situation escalates, the disruption to normal life and to how businesses can run is only expected to worsen. Many businesses will be and should be starting to look at their current insurance policies to ensure they are efficiently covered. Insurance expert Nilam Sharma explains what businesses should be doing now.

1. Locate all the insurance policies the business has. There should be some or all of the following in place:
   – General Liability
   – Business Interruption policy (either a standalone or part of a General Liability policy attached as an endorsement)
   – Employers’ Liability (normally a certificate on the wall in a public area)
   – Employment Practices Liability
   – Directors and Officers Liability
   – Crisis Management insurance*
   – Mitigation insurance*
   – Reputational insurance**These will either be standalone or part of General Liability or Business Interruption policy. There is a sub-limit which allows the policyholder to spend up to a certain amount to manage their risk and incur the cost of doing so.
2. Contact the broker listed on the insurance policies and ask them for their views and take some guidance from them.
3. Review the policies and look at the section entitled Coverage. It will tell you immediately what you are covered for.
4. While most policies have an “Act of God” exclusion, a number of insurers are recognising the gravity of the situation and are working with their clients.

If you require advice on your how your insurance policies over the effects of coronavirus, please contact Nilam using the below details.