International risk team: The impact of COVID-19 on existing business interruption claims
The global spread of COVID-19 and its impact on a wide range of businesses is unprecedented in its speed and scale.
Much has been written on insurers’ potential exposure under infectious disease and public authority extensions due to the cessation of business and broader ‘lockdowns’ as a direct result of the virus. However, prior to such lockdowns, many businesses were already suffering interruptions to their operations and consequential loss of revenue, due to insured property damage events whether arising out of fire, flood, breakdowns of machinery or other insured perils. In many instances the impact of COVID-19 on the supply of replacement parts and labour to repair damaged equipment has resulted in such pre-existing interruption periods becoming prolonged.
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