Tuesday 17 March 2020

‘Business Interruption Insurance’ doesn’t cover your business being interrupted, confirm insurance companies


Insurance executives

Insurance companies have been quick to point out that having business interruption insurance doesn’t mean you’re going to get a payout when your business gets interrupted.

After the government was criticised for not forcibly closing bars, restaurants and pubs, as this would not allow those businesses to claim on their insurance policies, the insurance companies have been quick to explain it matters not one jot whether the government mandates the closure, or not – you’re not getting a payout.

Insurance executive Simon Williams told us, “I get it, businesses take out continuity insurance from us in the hope we’ll step in during their hour of need and save the day.  Alas, that will not be happening.

“A much better title for the type of cover you all have would be ‘business interruption insurance only in these very tightly-defined set of circumstances’.  But that’s not as easy to put in an online advert, so we went with the shorter version.

“Basically we are happy to cover your business in case of things we think will either never happen, or won’t cost us very much if they do.  Something like a global pandemic? That would cost us billions, and we’re not idiots, so of course we don’t cover it.

“This shouldn’t come as a surprise, it’s all right there in the fine print you people never choose to read.”

Small business owner Jackie Matthews told us, “I’m not sure who they think will be paying them all those lucrative monthly premiums when we’ve all gone out of business?

“Then I remember they’re part of the financial services industry, so even if they do get into trouble, the government will no doubt be quick to write them a nice fat cheque to keep going.”

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