My parents run a cafe that is now shut down due to the circuit breaker. We have a business insurance policy. Can we claim for lost income?

If you run a business that's affected by the shutdown, the relevant part of your business insurance policy that would activate would be business interruption coverage. This will pay you a daily cash benefit if your business shuts down for more than 24 hours due to causes like:

• Fire destroying your business premises

• Suppliers not delivering goods because their property was damaged

• Customers defaulting on payment to you because their property was damaged

• Sudden breakdown of machinery/equipment

Unfortunately, business interruption insurance does not cover the recent Covid-19 government shutdown. Because the coronavirus is a pandemic, business insurance coverage will not apply (various exclusionary clauses apply - some insurers classify it as "Force Majeure", others will exclude it because it's an infectious disease). Read the full explanation on how does Covid-19 affect business insurance here.

However, even though business insurance will not cover Covid-19 related shutdowns, it's still critical for all businesses to have business insurance. Given that we're in a recession, any accidents like fire outbreaks, worker injuries, or lawsuits will be exponentially harder to deal with given that revenues are rapidly shrinking. It's crucial for SMEs to save as much as possible on insurance.

With Provide, you can save up to 25% on business insurance. If you upload your current policy documents, you'll get the same coverage with a guaranteed 10% discount. Upload your policy now to save. Get cafe insurance here.​​​

Short answer, no.

I have a headache reading all these cheem answers by insurance advisors...​​​