Coronavirus (COVID-19) business interruption insurance

Coronavirus (COVID-19)—business interruption insurance

As the government mandated lockdown continued, businesses reliant on customers or staff being physically present at their premises sustained mounting business interruption losses. Although support from the government in the form of furlough payments and business rates relief helped mitigate some of these losses, most business that had to close still realised significant revenue losses.

Many of these businesses found themselves uninsured, as property insurance policies covering business interruption losses typically require such losses to result from insured damage to property. Some businesses, however, had purchased property and business interruption insurance with additional extensions—so called ‘non-damage extensions’, designed to cover losses arising from other causes, such as disease within a specified