The impact of the Coronavirus on insurance

The potential impact of the Coronavirus on insurance cover has already been aired in the press a multitude of times in respect of a plethora of different categories of insurance policies. In some cases, areas of vulnerability may not have been addressed by insurance at all (or not sufficiently)  for a variety of reasons.


The fact of the matter is that if a policyholder or other beneficiary has insurance cover in respect of the Coronavirus, then whether it will respond and the extent to which it may respond is dependent on an accurate appraisal of the terms of cover and the ambit of any exclusions in such cover. It, therefore, behoves all policyholders or beneficiaries to review their policy cover now.


If in doubt, Risk Managers and all others concerned with cover should be notifying their legal or insurance advisors now to protect the position of insureds/beneficiaries to the fullest extent that is possible. It would, of course,  be vital to advise insurers if the policy so requires.


What is clear is that the Coronavirus will trigger some sizeable payments by insurers. It has recently been announced that travel insurers expect to pay out at least £275 million to travellers due to the Coronavirus according to first estimates from the Association of British Insurers.


This note is not legal advice. Further assistance can be found from the webpages of the Association of British Insurers. We give our contact details below.


Spencer West LLP is a law firm that thrives on the business of its clients and protecting that business.  If you need insurance help in connection with the Coronavirus, please contact Christopher Galyer