The key challenge is to find Liability Insurance, for many business sectors. The Government have supported businesses for 10 months now, but the elephant in the room is, they are unable to secure renewal insurance policies. It is a legal requirement for liability insurance to be in place, so all these businesses will be unable to open again, post lock down. Government must legislate for The Insurance Industry to provide cover, or underwrite any extra insurance liability. General Insurance Markets are hardening, with certain aspects of cover becoming limited or unavailable. Several grants, the furlough scheme and 100% bounce back loans, will be wasted, if businesses are unable to open again, and trade, generating tax revenue, if the insurance industry turn renewal policies down. The Leisure Industry, Hospitality, The Adult Industry and even care homes face a tsunami of closures because of this issue.
1. The Government should legislate
2. The Government should underwrite extra liability insurance
3. The Government could become the insurer for the sectors hit by this problem
This is my submission to the Haywood Foundation, for a new policy from the Government to support those businesses affected by Covid-19. This huge issue should have been solved by now, well in advance of any possible easing of restrictions. It was either short sighted, or not taken into consideration, or ignored, and hoped it would go away.
This will escalate, in the months to come, as Insurance policies come up for renewal.
My apologises, this submission was intended for the case (2) key challenge. It is more suited.