Is Your Business Insured Against the Risk of Coronovirus?
Although the number of confirmed global infections looks set to keep climbing, the Coronavirus, now known as COVID-19, is yet to be confirmed in South Africa.
Local businesses, from industries like hospitality, retail, construction, transport and health care are nevertheless understandably concerned about the potential financial impact the continued spread the virus may have on their operations.
GRIB Commercial Accounts Executive, Misha McLean weighs in on whether-or-not a standard commercial insurance policy will cover “loss of income” if a business is forced to shut down because of the outbreak:
“In most standard commercial insurance policies, business interruption cover is only triggered when the policyholder suffers “direct physical loss of, or damage to”, insured property by a covered peril such as fire, storm lightning or flooding. In the event of a claim for Coronavirus-related business interruption, some insurers may dispute whether a business has in fact suffered a physical loss.”
Misha also warns that “broad exclusions normally apply” to insurance policies with reference to pandemics and epidemics like the Coronavirus outbreak. “Business owners should therefore proactively manage their risk exposure by collaborating with their insurers and brokers to determine whether their existing policies adequately protect them against potential losses.”
At GRIB we’ve explored which insurers can provide cover for infectious and communicable diseases and are able to offer you a wide range of options designed to offer greater protection.
Time for a policy check up
To safeguard your business from the knock-on effects of the Coronavirus outbreak, contact Misha on 044 382 0550 for further advice.
* This article is provided for informational purposes only and should not be construed as legal or financial advice.