It does not matter how big or small your business is, all industries are suffering at the hands of coronavirus. There are currently over 4 million cases worldwide and around 43 percent of businesses are having to temporarily close. Most business owners are experiencing a loss of income, problems with suppliers and even new customers are drying up.
If you are a business that is still able to stay open during COVID-19, you may be worried about your costs. For example, paying your staff might be stressful if work is limited or what if accidents happen with third parties during the pandemic. In particular, you will want to know if your business insurance is going to cover you for the effects of the coronavirus. Let’s take a look at how you can find out.
Dig Out the Terms and Conditions
Businesses should check their terms and conditions of their insurance to see if they are covered during the coronavirus pandemic. You will need to read through your policy and what you have signed up to. Business insurance can be significantly different and while some policies will cover you for losses during COVID-19, others will not.
First of all, read through the terms and conditions. Normally, there are different sections and you can see if there are any relevant areas that are going to talk about natural disasters, pandemics or unusual circumstances. Look at the wording very carefully to see if you will be able to make a claim.
In particular, those with Business Interruption Cover are going to be better protected during coronavirus. Just as the name suggests, this type of cover is going to offer you coverage for a loss of income in the event you have to stop business. If your business insurance states that it will pay out in emergency situations, such as pandemics and government closures, this should mean you are safe. You should be able to use your business insurance if you are in a bad place during COVID-19.
One problem is that some Business Interruption Cover insurances will only protect against known virus outbreaks. For example, in some terms and conditions, there will be a list of specific diseases and you can only claim if the outbreak is on there. Since COVID-19 is not a known disease and scientists are still learning about the virus, you may not be covered by your business insurance. Some policies are broad while others are limited.
Investing in a New Business Insurance Policy
There are a lot of business owners that want to switch to a different insurance company during COVID-19. Unfortunately, this is not always possible. There are often terms and conditions for Business Interruption Cover that means it will only work if the event is unforeseeable. It cannot be said that coronavirus is now classed as ‘unforeseeable’. This could mean that your efforts are wasted.
However, you may still have options for business insurance if your business is still open. For example, insurance like general liability from Next insurance. This is going to focus on covering you in the event something goes wrong with a third party. General liability insurance is a good way to protect your business. Accidents can happen at any time, especially during COVID-19. Any lawsuits or medical costs are going to be covered and this can be exactly what you need if you are remaining opening during this difficult time. If something goes wrong during the pandemic, this accident could be enough to shut your doors forever. With the right insurance, you can prevent this from happening.