Property Business Interruption FAQs
The threat of coronavirus is affecting all of us, and you will no doubt have questions related to your insurance cover with Hiscox. In light of this, we have prepared a series of answers to some of the frequently asked questions we are receiving.
FAQs
At Hiscox we pride ourselves on our claims service and we will do everything we can to respond when a policy is triggered. The core Business Interruption cover provided by our policies responds to physical property damage at the insured premises resulting in the business being unable to trade. Hiscox’s policies have never included diseases linked to pandemic such as SARs, Avian Flu or Coronavirus due to the difficulty of insurers being able to quantify the potential risk.
Pandemics or government ordered national shut downs do not, in themselves, trigger cover under our policies.
As you can imagine, each claim is different and so the question of whether or not the policy affords cover will be determined by the circumstances of the claim and the terms and conditions set out in the policy documentation (including policy limits, excesses and any endorsements). The information below relates to Property Business Interruption policies issued by Hiscox and is correct as at 18 March 2020. We will update this page with the latest information as the situation continues to evolve, so please check back for future updates.
We have decided to voluntarily shut our business to protect the welfare of our employees. Are we covered?
There is no cover under your policy in these circumstances.
One or more of our employees is self-isolating or has gone to hospital as a result of an actual or suspected contraction of COVID-19. We have decided to voluntarily shut our business. Are we covered?
There is no cover under your policy in these circumstances.
We are keeping our business open, but we are experiencing a reduction in custom and a subsequent loss of income/profit as a result of the Government’s social distancing advice relating to COVID-19. Are we covered for these financial losses?
There is no cover under your policy in these circumstances.
A public authority has issued a ban or restriction specifically relating to the use of our insured premises following an outbreak so we have been forced to shut. Are we covered?
If your policy contains the ‘public authority’ cover, and a ban or restriction specifically relating to your premises has been imposed following an outbreak, then we will be able to consider your claim. If your policy does not contain the ‘public authority’ cover, then unfortunately the policy does not respond. Advisory restrictions or shut downs, or mandatory restrictions or shut downs that apply generally or to a sector, are not covered.
A property in the vicinity of our insured premises has closed due to an outbreak of COVID 19 at those premises. We are still able to trade but it has impacted our business and reduced our income and/or profit. Can we recover our losses under the policy because this nearby business has closed?
There is no cover under your policy in these circumstances.
A supplier or customer has closed their business as a result of COVID-19 related issues and it has caused our business to suffer losses. Are we covered?
There is no cover under your policy in these circumstances.