Coronavirus (Covid-19) Business Insurance Claims

Unfortunately, as made clear in the media and in our recent communication, Aston Lark are expecting significant pushback from insurance companies with regard to Business Interruption and Contingent Business Interruption claims. Similar to insurance policies elsewhere in the world, physical ‘damage’ needs to occur before Business Interruption insurance cover is triggered. A voluntary or mandatory closure as prescribed by the UK Government is unlikely to be covered by most policies due to the lack of ‘damage’. To discuss your policy cover further, please get in touch with your usual Aston Lark contact.

Covid-19 is unprecedented and the financial and non-financial impact, to a large extent, remains unknown and therefore, whilst the support measures recently offered by the UK Government (including the Government-backed business interruption loans) are welcomed, they may well decide in the future to take this a step further. We would recommend that our clients regularly refer to the HM Gov website for up-to-date information on the financial support on offer. You can sign up for email alerts about Coronavirus (COVID-19) here.

Given the current uncertainty, we suggest the following practical steps:

  • Keep accurate financial records during this time in case the UK Government introduces further initiatives to recompense or support.
  • Remain vigilant regarding situation updates and heed UK Government and other guidance regarding the health & safety of your employees. In partnership with Champion Health, we are offering our clients a free online support and advice tool.
  • Remember to keep Aston Lark up-to-date on any changes to your business, for example any changes to: products being manufactured or sold; territories sold to; the introduction of different cooking processes; or the occupation of any premises or property. These are all examples of material facts that need to be disclosed to insurers.
  • For clients that have been asked by the UK Government to ‘hibernate’, we have issued a Dormancy Checklist which, if followed, will enable you to return to service quickly.
  • Remember to continue to adhere to all policy terms and conditions, such as Security Conditions.
  • For those who need to work from home, please ensure that you have sufficient insurance cover in place for laptops and equipment.

The situation is clearly fluid and changing on a regular basis and we will do all we can to keep our clients up-to-date on developments. You can find additional resources on our website, and we will issue regular updates via Twitter and LinkedIn.

If you have any concerns or questions about your specific insurance cover, or need to talk to us about changes to your business, please speak to your usual Aston Lark contact.

Useful links:

Further information on the UK Government’s Job Retention Scheme and how to apply