Originally written by Timothy Adler on Small Business
Millions of businesses have taken out small business interruption insurance, but will your policy pay out if you have to shut down because of coronavirus?
Business interruption policies are usually taken out to cover acts of God such as flooding and fire. Insurance policies such as these physical damage at a property that results in the small business being unable to trade.
And only a small minority of larger business owners may have previously arranged an additional clause covering them in the event of a pandemic.
>Further reading: What kind of insurance does your small business require?
However, because Covid-19 was only officially named by government on March 5 as a “notifiable disease.” This means “registered medical practitioners” (RMPs) have a legal duty notify their local council or local health protection team of suspected cases of certain infectious diseases. This is one of the key criteria which insurance companies need to know before they pay out – any policies taken out before then will not cover coronavirus.
French insurer Axa has told customers that its general business interruption insurance does not cover losses caused by Covid-19 as it only protects against diseases specifically named in its policies. Covid-19 was