The Association of British Insurers (ABI) reiterated its stand on business interruption cover following the government intervention to ensure providers pay out to those with pandemic business interruption cover. The government assured policyholders yesterday (17 March) these particular claims will be accepted by insurers even though current business closures are voluntary and not mandated. Unprecedented The ABI commented: “The spread of coronavirus is unprecedented in modern times and we understand this is an incredibly difficult time for families and businesses. Related articles Finance adviser suspends broker fees Covid-19: Software houses release continuity plans Covid-19: Biba defends hiring Boris Johnson as speaker Travel brokers reveal mixed approach to coronavirus cover “Standard commercial insurance policies – the type the vast majority of businesses purchase – provide cover against a wide range of day to day risks including damage caused by fire, flood, theft and accidents involving employees.” A spokesperson detailed: “Insurers pay out £22m each day to firms through these policies, supporting millions of businesses across the UK each year. “Only a very small minority of businesses choose to buy any form of cover that includes local closure due to an infectious disease.” The ABI was criticised for the tone of its former statements yesterday by former Post editor and journalist David Worsfold, who wrote: “The statements from the ABI have been blunt, insensitive and totally lacking in awareness of how insurance is perceived.
The insurance industry has faced a customer backlash as most commercial policies do not cover for business interruption caused by pandemic.
by Dobson Hodge
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