Australian insurer QBE has said that its reinsurance coverage should limit the costs of COVID-19 related business interruption (BI) claims to £75 million in the UK.
However, the company maintained that its BI policies do not typically cover claims arising from COVID-19.
“Many businesses are facing an extremely concerning time at present and we are working closely with broker partners and agents to support our customers during this uncertain period,” the company said in a recent statement.
There has been concern in the industry that some countries could push for legislation that would force insurers to retroactively cover BI claims connected to the virus, even if they had been explicitly excluded in the original policy wording.
In the UK, the government has assured that it will not pursue such action, but there is still contention among policyholders about some insurers’ refusal to pay out on what are seen as legitimate claims.
Hiscox, for instance, sees its COVID-19 business exposure as fairly limited, but could now be facing legal action from a group of brokers and loss adjusters.
Meanwhile, the Association of British Insurers (ABI) has rejected an appeal for BI support from the UK pub industry, insisting that re/insurers have no responsibility to pay out on claims related to the pandemic lockdown.
