No. Insurance companies will not cover incidents that occur before you bought the policy.
For instance, if you bought a motor insurance policy after you got into a car accident, you wouldn’t be able to file a claim. The same principle applies here.
Business interruption coverage only applies for shutdowns not related to Covid-19. For example, some
business interruption policies cover infectious diseases like SARS.
However, if the shutdown is related to Covid-19, coverage won’t apply from any insurer due to the virus’
Business interruption usually covers disruptions to your business due to:
Fire & explosions
Water damage & floods
Machinery & equipment breakdown
Supplier disruptions (e.g. non-delivery of inventory)
Burglary, malicious attacks, vandalism
As you can see, coverage is quite wide. If you get your business interruption policy from Provide, we guarantee broad business interruption coverage that’s tailored to your exact needs.
There is usually a minimum disruption period of 24 hours for coverage to apply. This means your business must be shut down for at least 1 day before you can make a claim.
Because of its pandemic classification, the risks for insurers is too significant. Given its extraordinary spread, many insurers are likely to interpret Covid as an “act of god”, which would exclude coverage for the disease. Any insurer willing to offer business insurance cover for Covid-19 would almost certainly suffer significant losses. This would also unfortunately cause premiums for all policyholders to increase – and the increase would likely be dramatic.
Yes, because business insurance protects you from many risks that could cost your business significant amounts of money.
Covid-19 has triggered a severe global slowdown, causing Singapore to head into a recession.
Although there are no business insurance policies that cover Covid-19, we strongly recommend getting a business interruption policy as we head into a recession. Business interruption insurance covers many risks associated with a recession, like:
Suppliers not delivering their goods to you, causing business disruption
Customers not paying you on time, causing your business to shut down