COVID-19 continues to create global uncertainty. The financial consequences of government shutdowns are unprecedented and this has led to the most severe economic recession in nearly a century. Hardest hit is the SME sector – in the US alone small businesses are estimated to be losing US$450 billion a month.
Many business owners have turned to their insurers, expecting business interruption (BI) cover to provide for the loss of turnover caused by the crisis. However, insurers’ general position is that it was never intended for business interruption policies to cover losses arising from a pandemic – unless specific cover had been taken out, which in turn would be subject to a sub-limit of liability. Individual governments must shoulder much of the responsibility for mounting costs associated with the radical lockdowns imposed to contain the spread of the virus.
Drawing on the experience and expertise of our senior BI specialists, from across Sedgwick’s global business, this report uniquely summarizes the state of play in respect of the key policy, industry and government responses to COVID-19 .
At present, the global outlook remains highly uncertain. What we can say for sure is that our BI teams will continue to provide the help and support insurers and their policyholders need – whenever we’re needed, anywhere in the world.