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<p>The Government is in continual dialogue with the insurance sector about its contribution
to handling this unprecedented situation.</p><p> </p><p>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.</p><p> </p><p>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.</p><p> </p><p>However,
it is important to note that most businesses have not purchased insurance that covers
losses from unspecified notifiable diseases, such as COVID-19. Some policies cover
losses arising from any disease classed as notifiable by the government, however most
policies only cover a specific list of notifiable diseases.</p><p> </p><p>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 in the Budget, on 17 March, and on 20 March, which includes
measures such as business rates holidays, the Coronavirus Business Interruption Loan
Scheme, and wage support.</p>
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