Balcombes Claims Management has examined many commercial policy wordings and most of them require that in order for the infections disease cover to apply there must either be one of the following:
1. a specified list of diseases – of which Covid 19 is not listed as it is a new disease – no
2. infectious disease cover with no specified list of diseases – it must have occurred on
the premises – unless a staff member is affected it may be impossible to prove – no
3. infectious disease cover where it must have occurred within 1km/10km/25km/40km
of the premises – possible cover if the business is close to a hospital or known case of
4. It must have been due to a closure order by the local authority – and then it depends
on the exact wording – most businesses are closing due to health and safety concerns
for their staff and customers or due to lack of footfall and close voluntarily for
economic reasons – no cover applies.
5. If there is Denial of Access cover by a local authority on a ‘no damage’ basis – cover
may apply depending on the wording.
In any policy where it has cover for infectious diseases, there is a specified inner limit of a
flat sum usually €15,000 up to €50,000, or a percentage of the Business Interruption sum
insured e.g. 20%, or a time limit e.g. 3 months.
On a review of various policies to-date from enquiries received the following is the situation:
© Balcombes Claims Management 2020