COVID-19 and Business Insurance
As the pandemic sweeps across the globe causing mass disruption in its wake, you might be thinking more carefully about business insurance. Are you covered for any disturbances caused by COVID-19 or should you think about taking out a more comprehensive policy? We’re taking a deeper look at the insurance industry as a whole and looking at several considerations to keep in mind.
How is the Insurance Industry Handling the Pandemic?
While in the early stages, the pandemic has already unsettled many industries including the insurance sector. With COVID-19 impacting most UK businesses in some way, many insurance companies are simply stating they don’t have the funds to cover losses on such a wide scale, particularly when they’re used to dealing with localised or individual events such as flood or fire. Businesses that only have a basic level of cover are also unlikely to be covered for pandemic-related issues. This is because policies usually cover things such as ‘physical loss or damage’ and therefore quarantine situations, social distancing and business closures will not trigger an insurance pay out.
What Type of Business Insurance Should I Consider?
There are many different types of business insurance available these days including Professional Liability Insurance, Property Insurance, Product Liability Insurance, Vehicle Insurance and Business Interruption Insurance. The latter pays out when you’re unable to operate your business as normal so it’s worth looking into Business Interruption Insurance COVID-19 policies to see if these will offer you a greater amount of pandemic protection. No-one knows exactly how long the pandemic will last and therefore looking into more suitable insurance policies is certainly necessary.
I’m Covered for the Pandemic But I’ve Not Been Paid
If you’ve taken out a policy that covers pandemics or periods of forced lockdown then you should be fine and have sensibly protected yourself as much as possible. If you haven’t yet been paid and are expecting a sum of money, be sure to contact your insurance provider to see what’s happening. According to the FCA, insurance companies that promise a certain level of cover should pay out as soon as possible or explain themselves to the watchdog.
Due to the pandemic, you may find that your insurance company is simply overwhelmed and dealing with an unprecedented amount of insurance claims and payouts. It might just take a bit longer for your claim to be processed, but it’s good to get in touch with your provider to put your mind at ease.
Keep in Contact With Your Accountant
When it comes to managing your finances during a pandemic, it’s really important to stay in close contact with your accountant in order to receive the best advice possible. Get all the help and support you need and know that you’re not alone in the COVID-19 battle.
Staying on-the-ball during the pandemic is an absolute must for businesses and we’re here to help you cope financially, every step of the way. Contact us today for more information and receive a tailored service that caters to your business needs.
