Mar 12, 2020

Covid-19: The Insurance Position

Many businesses are considering or facing coronavirus-related threats on a number of levels at the moment and all should be ‘dusting down’ their Business Continuity and Disaster Recovery plans.

Not surprisingly, an increasingly ‘Frequently Asked Question’ concerns the extent to which insurance cover exists to meet any financial losses that may arise. The short answer is that there is generally no meaningful cover available for Property Damage and/or Business Interruption losses related to the impact of Covid-19 (Coronavirus).

As far as Employers’ and Public Liability policies are concerned, insurers will respond to claims brought against a business alleging negligence for personal injury. Appropriate 'due diligence' should therefore be exercised, as always, in the context of both employee and customer/public welfare.

In the context of Business Travel cover, if Covid-19 is diagnosed prior to departure or if the purpose of the business trip (e.g. conference) is cancelled, policies would generally provide cover for Trip Cancellation, but 'fear of travelling' in itself would not be covered.

Should Covid-19 be contracted while on a covered trip, there should be cover for consequent Medical Expense and Trip Interruption/Curtailment costs.

All covers, of course, are subject to the terms and conditions of your insurance policy and travel against Foreign Office advice should generally be avoided.


If any clients have queries or concerns, please get in touch with your usual broker contacts who will be happy to help.

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Blackford is a trading name of Blackford Group Limited, authorised and regulated by the Financial Conduct Authority (Firm Reference 831508). Registered Office: Blackford Group Limited, 26 Charlotte Square, Edinburgh EH2 4ET (Registered SC616744). Blackford Group Limited is an Appointed Representative of James Hallam Limited, authorised and regulated by the Financial Conduct Authority (Firm Reference 134435).

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