Many SMEs in Australia have been hit hard by COVID-19 – especially hospitality businesses. Some businesses have scaled back their services (e.g. takeaway or online orders only) while others have gone out of business altogether.
This is all rather concerning. Another concern some business owners may have about COVID-19 is how it will affect their insurance cover. Here are some thoughts around this.
Premiums
It is possible that your premiums could increase, not only due to the pandemic but also due to a hardening market, the recent bushfires, and an increase in the number of claims.
That said, some insurance providers are offering help to their customers in the form of deferred payments and financial hardship assistance, to help them through.
Business interruption claims
As a rule, business interruption provides cover for catastrophes (e.g. fires), and pandemics are not included. So it’s unlikely you would be able to claim for business interruption due to COVID-19.
However, a test case is before the courts regarding this – so it’s possible things could change!
Pertinent coverages
Right now things are not exactly situation normal! This means you may need to ensure you have specific types of cover for your financial protection.
For example, businesses at risk of bankruptcy should consider debtor insurance in case of non-payment of debts.
Also, cybercrime is growing faster than ever with the pandemic! Work-from-home activities where employees use their own internet connections are not helping with this either. So, this might be a good time to double-check your policy to ensure you have adequate cover.
Speak with your local Reliance Partner to find out more.