Coronavirus and insurance

Covid-19 and responses to it have created new challenges for customers and insurers alike.

There are no simple answers to many of the enquiries that constituents may make – and neither the Library nor caseworkers can offer legal advice.

This article provides a general background and links for helping caseworkers deal with questions about covid-19 and insurance.

Constituents should check existing policy documents

The answer to most questions is that constituents should check their existing policy documents to see whether they are covered. They should:

• check what their policy says
• speak to their insurer to clarify the details of their cover
• ask for confirmation of that advice in writing

More specific advice

The Association of British Insurers (ABI) has published a webpage with answers to some common questions on coronavirus. It has specific sections on many of the main types of insurance.

Again the overall message is for policy-holders to speak to their insurers.

Business interruption insurance has been a particularly difficult area. Most policies didn’t cover closure and losses related to the pandemic. There is more background in our briefing paper Coronavirus: Business interruption insurance. The Financial Conduct Authority has also published information for policy-holders who think that they may be covered.

What if someone disagrees with their insurer?

Constituents may wish to follow the standard complaints procedure. Please note that this is unlikely to lead to a fast resolution of any concerns. 

What if someone isn’t covered or doesn’t have insurance?

There could be other solutions. For example, suppliers might offer a refund or change a booking if the constituent contacts them. It might be possible to get a refund if they used a credit card.

Businesses should also consider the various support schemes offered by the Government. They are outlined in our briefing paper Coronavirus: Support for businesses.

Renewing and buying new policies

It may be harder to renew or buy new policies, and prices may have risen. This is likely to be particularly marked in travel insurance. The British Insurance Brokers’ Association offers a Find Insurance Service that may be able to help. It may respond better to individual circumstances than general price comparison websites do.

Further information

• Coronavirus: Support for businesses (Commons Library)

• How to complain about a financial service (Commons Library)

• Coronavirus: Business interruption insurance (Commons Library)

• Insurance: Frequently asked questions (Commons Library)

• Coronavirus: Problems with business interruption insurance  (Commons Library)

Disclaimer

The Commons Library does not intend the information in this article to address the specific circumstances of any particular individual. We have published it to support the work of MPs. You should not rely upon it as legal or professional advice, or as a substitute for it. We do not accept any liability whatsoever for any errors, omissions or misstatements contained herein. You should consult a suitably qualified professional if you require specific advice or information. Read our briefing for information about sources of legal advice and help.