Pandemic exclusion clause will prevent insurance payouts

Hundreds of businesses forced to close because of the coronavirus outbreak will have no protection for lost earnings because their insurers have removed cover for the disruption caused by pandemics or flu-type illnesses.

Disruption cover, which is standard in most corporate insurance policies, compensates enterprises that are forced to close while they recover from floods, fires or other disasters.

Many insurers have quietly inserted pandemic exclusion clauses in their policies, however, while others have exclusion for closures arising from “influenza-derivative” illnesses. The exclusions were added following the Sars epidemic that hit Asia in 2003.

The exclusions took effect last week after WHO declared the Coronavirus to be a Pandemic defined as a disease with global consequences. Up the last week, one could have argued that the exclusions shouldn't apply, although you would have to battle to persuade your insurance provider.(according to a senior industry source)

Once a pandemic was declared the argument was lost. This has huge consequences for businesses they have lost all protection for profits and some still haven't realised how serious this

article courtesy Irish Times

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