Hiscox says UK lockdown not covered under business interruption policy

(Reuters) – Insurer Hiscox said on Wednesday that its core policy wordings do not provide cover for business interruption due to a UK government-ordered lockdown put in place to prevent the spread of coronavirus.

Of UK small businesses who purchase cover for business interruption, Hiscox estimates about 10,000 have been directly impacted by the government-mandated closures.

The insurer said its “realistic disaster scenario” estimates a net loss of $175 million due to a global pandemic, mainly from losses on event cancellation, entertainment and travel insurance.

(Reporting by Muvija M in Bengaluru; editing by Carolyn Cohn)