You might have read this week that the organisers of Wimbledon could net more than £100 million after the tournament was cancelled due to coronavirus.
This is in contrast to the French Open, which stands to lose about £230 million if the event doesn’t go ahead.
The difference between the two big hitters? Insurance.
Wimbledon is reported to be the only one of the four grand slams to have insurance cover for pandemics.
The All England Club added an infectious diseases clause to its policy – thought to cost in the region of £1.5m – after the Sars scare in 2003.
Sharrocks has been asked by clients affected by the UK lockdown if they can claim on their insurance too. But the Association of British Insurers has said the majority of firms would not be covered for losses because they don’t have the enhanced cover.
Business interruption cover including virus outbreaks would cost companies significantly more in their premiums than a standard policy.
John Glen, Secretary of State for Business, Energy and Industrial Strategy, told Parliament this week that most businesses have not bought insurance that would cover losses from an unspecified notifiable disease such as Covid-19.
Most standard policies only cover for business interruption caused by a specific list of notifiable diseases if they offer this extension at all.
Mr Glen urged businesses to revisit statements from the Chancellor Rishi Sunak and review the support packages available to help them through these unprecedented times.
Sharrocks’ managing director, Alan Doucy, said: “It’s such a worrying time for businesses. The Sharrocks team is working to support clients as best we can and understands how frustrating this period is.
“My advice to businesses would be not to let policies lapse if at all possible. Accidents can still happen and if your stock or equipment or property is damaged, you could be left even more out of pocket and less able to hit the ground running once the lockdown is over.”
For advice or an insurance quotation, call 01795 580800 or email enquiries@sharrock-insurance.com
