Business interruption insurance protects your business income if you can't trade because your stock, contents, or buildings are damaged.
For existing customers, business interruption insurance will usually cover you if there’s physical damage to your business premises. As Covid-19 does not cause physical damage to properties, you’re unlikely to be covered. Some of the policies we offer will cover loss of revenue or any additional expenses caused by an outbreak of disease. However, insurers will usually specify the list of diseases that are covered, and Covid-19 isn’t included. To find out what you're covered for, visit our Covid-19 Policy Checker.
The FCA business interruption test case
Recognising the uncertainty around whether business interruption insurance claims due to Covid-19 were valid, the Financial Conduct Authority (FCA) took a case to the High Court, and in September the court found in favour of the arguments advanced for policyholders by the FCA.
After an appeal by some insurers, this was taken to the Supreme Court. On Friday 15 January 2021, the Supreme Court dismissed the appeal – meaning that some customers will be able to receive a payout on a previously rejected claim.
The test case ruling only impacts customers with business interruption cover in their policy. For customers without business interruption cover, your eligibility to make a claim will not be affected by the recent test case ruling. You can see what your policy covers you for using our Cover Checker.
If you’re a new customer, all policies which have a disease extension will include a list of diseases covered, and Covid-19 isn’t one of them. Any Covid-19-related incidents that have already taken place or are currently taking place (such as the closure of your business) are not covered in new policies.
What if I need more help?
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