Potential liability risks for businesses as a result of Covid-19 and steps they can take to mitigate them

Ellie Rees and Sarah McQuillan, Hogan Lovells

Businesses have faced substantial disruption over the past months as the effects of Covid-19 have unravelled. The degree of change brought about as a result of government regulations and guidance, and the speed at which businesses have needed to adapt to comply with them, will inevitably increase the risks of potential liability from a number of angles. And it is far from over yet. Against this backdrop, this article seeks to set out some of these risks and steps that businesses can take to mitigate them. Underwriters will need to consider these in the context of their books of business in order to understand where potential claims may come from and also in order to help them better price the risk at renewal/quotation stage and apply appropriate terms. Nevertheless, it should be remembered that every industry and specific business is different so what may be a high-risk area for one will not necessarily be for another.