We have reviewed the Government’s announcement on 17.03.20 but this has made little difference to the insurance situation for most hospitality businesses though. Most insurers will only cover a predefined list of diseases which will not include Covid-19 as it is a new strain. Some policies extend to cover any Notifiable Infectious Disease and will have an extension to provide cover where there has been closure from by a Public Authority as a result of a Notifiable Human Disease but this will only operate if the outbreak occurs at the Premises and in some cases the close proximity to the Premises.
Some policies will also have a Non-Damage Denial of Access extension but in most cases it will exclude the denial of access following the outbreak of infectious diseases. These measures were put in place following the SARS outbreak to limit insurers global exposure to a Pandemic.
Despite the lack of obvious cover in place for the hospitality industry James Hallam will be discussing the current situation with insurers. We will be speaking to our clients on an individual basis but all businesses should treat themselves as uninsured and take the appropriate action to minimise their financial loss.