TO EXCLUDE COVID-19?
The Covid-19 pandemic and resultant lockdown has already crippled thousands of SMMEs. Despite the various financial assistance schemes and funds available, businesses are suffering damages due to the delayed responses from these funds and the complete lack of cash flow and liquidity while a lot of overheads remain.
Some businesses may have business interruption policies that cover them for specific events that cause temporary business closure and the consequent damages.
The reality is that if your business insurance policy does not explicitly make provision for this infectious decease type of interruption, you are not covered and will not be able to claim for your damages or losses due to the business interruption caused by the lockdown.
However, some of the companies which have special policies covering, specifically, business interruption due to infections and the outbreak of contagious diseases, were recently informed by their insurers that, after consultation with their underwriters and global partners, they plan on amending the wording of their business insurance policies to exclude any loss and damages suffered by their clients due to the Covid-19 pandemic and lockdown, from end of April and/or May.
Although we are not in a position to comment on the legality of such an amendment, or the moral and ethical considerations thereof, this amendment, while the pandemic and consequent business interruption is still ongoing, leaves one with a bitter taste.
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