Could insurance small print be the best thing you’ve ever read?

Holidaysplease director Charles Duncombe says a recent High Court ruling means the company is covered for £100K

The small print in business insurance policies often feels like a series of mini land mines designed to blow a hole in any insurance claim you may wish to make. However, thanks to a recent case in the High Court, this small print could work in your favour and help your business ride out the Covid-19 winter.

Many standard business insurance policies contain business interruption cover to compensate you if your revenue drops due to certain specific conditions. One of the conditions in the small print is often a ‘notifiable disease’ clause. This will trigger if there is an outbreak of a notifiable disease within a certain distance of your office or shop, and it restricts your access to those premises.

Insurance companies have been trying to claim that Covid-19 does not fit within the scope of the policy and therefore they have been refusing to pay out to policyholders. The Financial Conduct Authority (FCA) took the opposite view and launched a ‘super complaint’ in the High Court, which they won this month. The court ruled that Covid-19 was a notifiable disease and that government orders in the spring to tell people to work from home were essentially orders to close offices. They therefore said that many of these policies were indeed valid.

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Source: Travel Weekly