Following confirmation that some insurance companies are automatically applying reduced cover when businesses are closed over lockdown, SDLP MLA Daniel McCrossan says these actions are a low blow for many businesses struggling and says its time regulation was looked at to stop this activity.
Mr McCrossan commented:
“Many businesses have contacted me over the past week after receiving letters and emails saying their insurance cover will be automatically reduced over lockdown. This is despite paying the same premiums. This means businesses are not covered for theft, burst pipes or malicious damage.
“Given the already extremely challenging environment for businesses, this can only be seen as a low blow. Businesses are closed for the greater good and through no fault of their own. It is worrying that, should there be break-ins at this time, these businesses would not be covered for damage or loss. This has added unnecessary worry for those already struggling.
“It’s important that all parties here support a review into this situation. Insurance companies should not be allowed to get away with shafting hard working people and action needs to be taken.
“I have written to the Executive requesting such a review and asking for this to be raised with the British Government immediately, calling for insurance industry regulations to be amended urgently.”