Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions he has had with representatives of the insurance industry on the provision of compensation for businesses whose business interruption insurance does not cover the covid-19 outbreak.

The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation.

For those businesses which have an appropriate policy that covers government ordered closure and unspecified notifiable diseases, the Government’s social distancing instructions are 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 losses from COVID-19. Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers.

The Government recognises that businesses who do not have appropriate insurance cover will require support from elsewhere. As such, businesses should explore the full package of support set out by the Chancellor in recent weeks which includes measures such as business rates holidays, the Coronavirus Business Interruption Loan Scheme, and wage support.