The ABI has responded to an open letter from small business owners and representatives regarding business interruption insurance and COVID-19.
In the response, ABI Director General, Huw Evans, recognised the extremely challenging circumstances for many small businesses as a result of measures to combat COVID-19, and seeks to address concerns raised by the sector with regards to the response of the insurance industry and business interruption cover in particular.
Mr Evans remarked;
Far from failing our customers, insurers in the UK expect to pay at least £1.7 billion in claims as a result of Covid-19. This includes over £900m to businesses and £275m to people claiming on travel insurance. The international insurance market, Lloyd’s of London has said it expects this event globally to have more impact on the financial position of insurers than the 9/11 terrorist attacks or the 2005 hurricanes, with the global and systemic nature of this crisis challenging our industry in a way we have never seen before
He also highlighted the work undertaken to insurers each and every day to process claims worth millions of pounds from businesses through out the country and that;
We take pride in paying claims quickly and providing a safety net against some of the most common risks you face. No country in the world routinely provides affordable standard insurance cover against the risks of a global, viral pandemic but we will continue to look for future insurance solutions, while ensuring we fulfil the promises we have made to protect your businesses against the risks included in your insurance contract.
You can find more information on business insurance and a Q&A on our dedicated COVID-19 Hub pages.