Written Question on Small Businesses: Insurance

Written Questions are submitted by MPs or Lords to receive information from a Department.

See more on: "Small Businesses: Insurance"
Date Title Questioner
27 Apr 2020, 2:38 p.m. John Baron (Conservative - Basildon and Billericay) John Baron (Conservative - Basildon and Billericay)

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that small business insurers recognise covid-19 as a notifiable disease.

Answered by John Glen - Economic Secretary (HM Treasury)

The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation.

For those businesses which have an appropriate policy that covers government ordered closure and unspecified notifiable diseases, the Government’s social distancing instructions are sufficient to allow businesses to make a claim against their insurance, provided the other terms and conditions in their policy are met.

The FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. In addition, the FCA has said that, in light of COVID-19, insurers must consider very carefully the needs of their customers and show flexibility in their treatment of them. The Government is working closely with the FCA to ensure that the rules are being upheld during this crisis.

However, most businesses have not purchased insurance that covers losses from COVID-19. Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers.

The Government recognises that businesses who do not have appropriate insurance cover will require support from elsewhere. As such, businesses should explore the full package of support set out by the Chancellor, which includes measures such as business rates holidays, the Coronavirus Business Interruption Loan Scheme, and wage support.

You may also be interested in: