
Insurance
Financial hope for Australian businesses impacted by COVID-19
The impact of COVID-19 on Australian businesses has been devastating. However, there is good news for those affected.
Read moreThe COVID-19 pandemic has already caused significant loss of human life, with experts predicting that it could be up to 18 months before we’re through the worst of it.
In the meantime, precautions and prohibitions from the Australian government regarding social distancing, self-isolation and travel will have unpredictable impacts on our daily lives. Many businesses are already starting to feel the pressure – reduced work, sick staff, decreased supplies and disappearing customers. There will be difficult economic times ahead.
If you’re worried about the impact on your business or financial situation, and you’re unsure on how various existing insurance policies can help, we’ve answered the three most common scenarios.
Potentially. The best thing to do is check the fine print on your policy as soon as possible.
Most insurance policies that provide business interruption insurance will specify circumstances in which you are not covered. Unfortunately, this usually includes an exclusion against claims which are caused by an event that the World Health Organisation has declared a pandemic, such as COVID-19.
Dig out your policy and read it carefully, paying particular attention to the exclusions that apply to that policy. Contact your insurance broker or the insurance company directly for clarification on anything you’re not sure about.
If you are not covered by your insurance policy, seek advice from your bank or financial advisor to develop a plan in the event that your business operations cease or are disrupted by the pandemic.
You should also keep up to date with both state and federal government guidelines about the pandemic, including any business assistance measures or stimulus packages. There may be grants, subsidies or tax breaks available to you that can ease the pressure on your business.
If your insurance does cover you, read our 101 guide on making an insurance claim.
Again, it depends on your policy, and any exclusions it has.
As with other insurance policies, most will contain clauses that exclude cover if there is a pandemic. However this does differ between providers and between insurance products.
You need to check your policy and any exclusions that apply. You should contact your insurance broker or the insurance company directly for clarification if you are not sure.
If you think you should be covered, and your insurer has rejected your claim, read our guide. We step through your options if an insurer is behaving badly.
If you are not covered, then you should check the leaser’s website and see if there is any lease payment relief provided or alternatively call them.
Around one third of Australians have insecure work, so we understand that many people are stressed about the impact of the pandemic on cash flow.
Mortgage insurance, also known as home loan insurance or consumer credit insurance, is a product that protects the borrower from the risk of default. You need to check your policy to see if it covers your particular circumstances, such as loss of employment or medical incapacity due to a pandemic (such as COVID-19).
Most mortgage protection insurance cover will contain an exclusion against claims which are caused by an event that the World Health Organisation declares a pandemic, such as COVID-19.
You should contact your insurance broker or the insurance company directly for clarification if you’re unsure.
If you are not covered by your mortgage insurance, you should check your financial provider/institution’s website immediately to check if mortgage relief will be provided and in what circumstances.
The government’s stimulus package may assist you to keep up with your repayments. Information about requesting a change to the terms of a loan, due to financial hardship caused by COVID-19 is also available.
As times change, our advice to individuals unsure of their insurance, financial or employment status should:
This is a fast moving and unprecedented situation that will impact many parts of our society and economy.
If you need to seek legal advice, contact our team. We can review your policy for free and let you know what you are entitled to.
Most importantly, we hope you and your loved ones stay safe.
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