LLOYD’S GIVES GUIDANCE FOR COVID-19 PANDEMIC CLAIMS

Lloyd’s has provided coronavirus underwriting and claims guidance to managing agents. The corporation says it would expect Covid-19 to be covered where pandemic or contagious disease extensions are provided on business interruption or contingency covers. However, Lloyd’s says it does not expect covers to be extended retrospectively to cover Covid-19-related losses. While it was preferable expiring policies should be renewed rather than extended, the corporation says extensions “should be granted whenever appropriate”. The guidance comes amid increased focus on whether business interruption covers will operate during lockdowns when businesses are forced to shut, leading to the insurance industry coming under fire.