We are well into the beginning stages of Stage 4 lockdown in South Africa as we type this communication. We are all slowly becoming more aware that life as we know it has changed substantially during our lock down period and that it will continue to change until we find our feet in the ‘new normal’ for the foreseeable future.
We know that this is an incredibly difficult time for families and business owners who are close to home in South Africa and those internationally.
Businesses are either only starting to navigate what their new trading will look like or unsure when they will be able to trade again, and daily, we are engaging with our clients who are asking whether they are indemnified under their business interruption insurance policies for losses arising from the disruptions caused by this pandemic.
The majority of our clients only enjoy cover for business interruption following physical damage to or near to the insured property which is caused by specified perils where these clients have purchased cover. An infectious or contagious disease is not one of these ordinary specified perils in a standard business interruption section.
We continue to remain with our finger on the pulse with regards to discussions and decisions being made by insurers, reinsurers, other stakeholders in the insurance industry, our regulator and other industry bodies with regards to how and if any of these types of claims will be entertained now or in the future and we will continue to keep you updated on this.
We thank you, as always for your continued support we look forward to continuing supporting you during these difficult times.
Fiona Fitzpatrick – Managing Director of IF