At the time of writing the ‘lockdown’ remains in force and seems likely to continue for some time. It is clear that the result of these measures will be huge losses to (or at least substantially reduced profits for) many businesses which have been forced to close entirely or substantially reduce or change their usual commercial activities.
Many of these businesses will have Business Interruption Insurance and will expect that insurance to respond. Most will be disappointed. But a fortunate few are likely to have cover in principle. This is not an article about which wordings fall into which camp (much of this has been written and said elsewhere).
Rather, this article considers some of the issues an insured who otherwise has (or thinks it may have) cover should be thinking about in relation to its insurance. In particular, it looks at how a business’ decision to furlough or not furlough staff pursuant to the Government’s proposed Coronavirus Job Retention Scheme might impact on recovery under Business Interruption Insurance.