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Coronavirus outbreak “underinsured”

by LLB Editor
10th Feb 20 8:52 am

Thousands of businesses have been indirectly affected by the coronavirus outbreak because of disruptions to their supply chain.

While many won’t have specific insurance to cover a disease outbreak, some may be able to claim on a business interruption basis, said Bruce Carnegie-Brown, chairman of insurance market Lloyd’s of London.

“These types of virus are typically not covered by standard policies but on business interruption policies – if the virus itself doesn’t trigger a claim under the policy, than impact of the virus can,” he told the Today programme.

“If the government are creating lockdowns in terms of access to property and preventing goods moving than that could create a claim.

“The suspicion is it will be a reasonably under-insured event, partly because Asia is under-insured compared to other parts of world, and partly because the virus itself is new so not enough insurance is in place for it.”

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