We are all aware that the lockdown period is mandatory until end of April this year and only a few businesses are regarded as essential services. As a result, most businesses had to close down for this period, which, as a consequence, has led to a loss of income. There are certain businesses and individuals who at least, have the luxury of working remotely from home. However, this is not a luxury all businesses have at the moment and some are heavily reliant on the physical premises of the business itself.

The question now arises whether your insurance will cover your business’ loss of income. The answer is not a simple one as it is a matter of fact and not law, solely dependent on the specific provisions of your insurance contract.
 
Other aspects which need to be considered are that insurance contracts usually –
 

• sets forth a specific time-frame during which you need to submit your claim (most commonly 30 days from the occurrence of each event, however, it is dependent on the wording of the contract);
• provides a lengthy list of requirements you need to adhere to; and
• have built-in limitation of liability clauses.

It is therefore pertinent that you seek legal advice as soon as possible to determine whether your insurance contract covers your specific loss of income and to ensure that you meet the requirements in time in order to avoid disappointment.

It is also advisable to seek legal advice prior to signing an insurance contract apart from your broker to ensure that the contract sufficiently covers your specific needs. The purpose of an insurance contract is to cover yourself against risk, which is the trade-off you make by paying your monthly premiums. Make sure those premiums are not paid in vain and you are covered when you need it most.