1. 19:00 - 22:00 KFM Nights with Brandon Leigh
  2. 22:00 - 00:00 Music Saves The Day: SA Royalty

Many business owners, particularly those in hospitality, take out insurance policies which cover losses that include those incurred due to interruption by infectious or contagious notifiable diseases.

Covid-19 is just that.

Now, however, most insurers - including Santam, Hollard and Old Mutual - argue that the pandemic isn’t responsible for the loss of business – rather, it’s due to the lockdown.

Right now, only OUTsurance is paying business interruption insurance claims related to infectious diseases cover.

Refilwe Moloto interviewed Ryan Woolley, CEO of Insurance Claims Africa, a claim preparing company that famously dealt with the Knysna fires in 2017 and the 2019 floods in Mozambique caused by Cyclone Idai.

What's the point of business interruption insurance, she asked, when your insurer won't cover you for just that?

Insurance Claims Africa is representing close to 500 claimants in trying to get insurers to settle as going to court takes long and the claimants are racing to stay in business.

Insurers are reneging on their business interruption contracts. Many of the main insurers have boutique products to help businesses survive when there’s an event such as Covid-19 – an infectious, contagious, notifiable disease – and helps them to pay salaries and operating costs. Insurers say it’s not Covid-19 that’s causing their losses, but the government’s mitigations measures – the lockdown.

Ryan Woolley, CEO - Insurance Claims Africa

It’s a cause that cannot be separated from the event itself! It’s like there’s a fire, and the fire department extinguishes it. In extinguishing it, they pour water everywhere. That extended damage is never separated by any insurer by saying that this is a separate intervening cause!

Ryan Woolley, CEO - Insurance Claims Africa

It’s a nonsensical argument the insurers are putting forward because of their poor underwriting skills. They never did the math in terms of what it could cost them!

Ryan Woolley, CEO - Insurance Claims Africa

Santam has been very good; it’s supporting a fast-track court process…

Ryan Woolley, CEO - Insurance Claims Africa

These poor businesses won’t survive! Tourism employs 1.5 million people… now, these businesses are going to be left devastated.

Ryan Woolley, CEO - Insurance Claims Africa

Many insurers in the UK – and one or two in South Africa – chose to exclude pandemics from their policies. Here we have insurers that say they’re going to cover you for notifiable and infectious diseases, but they don’t cover you for pandemics! Where is that in the wording?

Ryan Woolley, CEO - Insurance Claims Africa

Listen to the interview in the audio below.

This article first appeared on CapeTalk : You’re insured against Covid-19, not the lockdown – insurers to their clients

More on KFM