GILC: the pandemic generated negative press, but have also made many businesses newly aware of the need for the right business insurance cover

25 January 2023 — Marina MAGNAVAL
In most countries, business interruption insurance is sold as an add-on to either property or multi-risk/all-risk policies. However, there are exceptions, such as the UK, where it is also sold as a standalone policy which covers notifiable diseases, says the report of GILC on Business Interruption.

The pandemic being a single lifetime event, caused debates between insurers and policyholders as to whether or not claims could be made for unexpected, forced closure of businesses. The pandemic and ensuing lockdowns led to a significant amount of uncertainty for businesses that looked to insurers, regulators and governments to support them and help recover financial losses that they had suffered. The report provides the differences between how regulators and governments in different countries have dealt with these legal proceedings. Globally, it is likely that business interruption policies will continue to be sold, potentially in greater numbers, particularly given that most small businesses are underinsured.

As GILC noted in the report, across the world, while claims have generated negative press, they have also made many businesses newly aware of the need for the right business insurance cover. In some markets, double-digit growth is expected in the year ahead, and in many places, it seems that business insurance could see a period of growth and stability as the market embraces a new wave of covid-responsive policies that either clearly exclude or include pandemic cover.

Global Insurance Law Connect has recently asked 19 members around the world to provide an analysis of their local market as it now stands. The results are presented in the first ever global report on business interruption insurance, highlighting the differences in approach across 19 countries and four continents. As 2023 unfolds, it is possible that businesses and insurers will find a way to leave behind the disputes of the past and move to a brighter future for this much-troubled class of insurance.

Global Insurance Law Connect is an alliance of insurance law firms spanning four continents. Inspired by client demand, they have built a formal network that delivers the right advisers in the right places and in the right way for insurance industry clients.



234 views
Share |