THE SNP's Alison Thewliss has called on the UK Government to address emerging gaps in insurance claims during the coronavirus crisis, following concerns raised by businesses who have been abandoned without cover.

Policyholders across Scotland have expressed frustration at claims being rejected, with a number of them being due to Covid-19 not being specified in their policy.

This appears to be occurring even when infectious disease is covered in their Business Interruption insurance.

The Financial Times highlighted that some insurers are moving to tighten up the wording in terms and conditions in an attempt to exclude Covid-19 from policies, which has prompted questioning over whether they felt their previous policy terms made them liable.

Glasgow Central MP Thewliss said: “There are growing concerns that many small and medium sized businesses face being left out in the cold and pushed into hardship, as some insurers have quickly moved to tighten up the wording of their terms and conditions to exclude Covid-19 from policies.

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“It has been a month since I asked the Chancellor to stand behind businesses left without cover by their insurers and so far, no support has been forthcoming. Many businesses have paid their insurance policies dutifully and were relying on that cover in order to stay afloat during these challenging times.

“When I also raised this issue with the Chancellor back in March, it was made unequivocally clear, that for businesses without the requisite cover it is important that the UK Government think more broadly about direct support for businesses - yet this has been sorely lacking.

“Many responsible businesses have taken prudent and practical steps of taking out an insurance policy to protect against unforeseen events – such as the outbreak of a virus – it now seems incredible that insurance companies can suddenly abandon their responsibilities in this way.

“Insurance policies which cover smallpox – eradicated over 40 years ago – but not Covid-19 gives little comfort to those who have had to close their doors and furlough staff on the instruction of public authorities.

“While I don’t ask insurers to retrospectively change policies, it is clear that the UK Government must seriously look at steps to act as an insurer of last resort to cover the evident gaps in these policies and protect struggling businesses across the UK”.

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