Business: Insurance

(asked on 23rd March 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 23 March 2020 to Question 31468 on Businesses: Insurance, what steps he is taking to provide insurance for businesses that have not been directed to close by the Government but have closed as a result of Government advice on the covid-19 outbreak.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 21st April 2020

Insurance is not an appropriate product where a risk has already materialised, or where it is overwhelmingly likely that a risk will occur. For this reason, where businesses did not already have an appropriate policy that covers government-ordered closure or unspecified notifiable diseases, insurance is not a suitable tool for the Government to cover the financial losses due to COVID-19.

The Government recognises that businesses who do not have appropriate insurance cover will require support from elsewhere. That is why the Chancellor set out a package of support in the Budget, on 17 March, and on 20 March, which includes measures such as business rates holidays, the Coronavirus Business Interruption Loan Scheme, and wage support.

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