The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation.
In addition, the Chancellor has made clear that, for those businesses which have an appropriate policy that covers pandemics, government’s medical advice of 16th March is sufficient to allow businesses to make a claim against their insurance, provided the other terms and conditions in their policy are met.
The FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed.
However, most businesses have not purchased insurance that covers pandemic related losses. As such, any affected businesses should note the government’s full package of support.
The Chancellor has announced two packages to support the people and businesses of the UK. A three-point plan providing £12 billion of support for public services, individuals and businesses whose finances are affected by the outbreak, and a package to provide further support for businesses and individuals totalling £350bn.