Covid-19: Business Interruption Loans

Baroness Bennett of Manor Castle Excerpts

Wednesday 22nd April 2020 Lords Chamber

[Lord Callanan]

My noble friend makes a very good point. As I said in response to an earlier question, we are looking to expand the pool of lenders as quickly as possible and at Funding Circle. We are working closely with the British Business Bank to make sure that all aspects of the SME market are serviced. The BBB has put in place substantial additional resource to assist with processing applications from new lenders as quickly as possible. On 11 April four new lenders were accredited, and we are looking to get the circle expanded as quickly as possible.

[Baroness Bennett of Manor Castle (GP)]

As the Minister said, many businesses do not want to rely on debt or are unable to do so. Some of them are small businesses, such as an independent café whose owner I have been talking to in Sheffield. She had all-risks business insurance. She thought that she was covered for business disruption yet has found that the insurance company refuses to pay. This seems a widespread, almost universal, problem and there seems to be a particular issue around the definition of physical damage and whether Covid-19 is included in it. A couple of US states are taking action to ensure that businesses are paid out. What action are the Government planning to make sure that people with all-risks insurance, in particular, get the cover they reasonably thought they had?