British protection insurance comparison website and broker ActiveQuote has assured policyholders that they are shielded against COVID-19.
“There are many worried people out there who are contacting us to make sure their income is protected should they contract COVID-19 or coronavirus,” noted ActiveQuote partnerships and marketing head Rod Jones.
“The simple answer is yes. It is the same as if you were signed off by a doctor for any other illness. If you have the illness or have to self-quarantine, then make sure you have a doctor’s sick note to activate your income protection policy, as per your policy terms and conditions.”
Jones also cited a spike in income protection insurance enquiries in the last week of February.
He stated: “This surge in enquiries is understandable as every newspaper and news programme is talking about the coronavirus. We are also hearing about so many people having to self-quarantine for up to two weeks and people being sent home from work, which for many people would mean them being unable to work and missing out on wages.
“Insurers are also reacting to the news that cases are increasing in the UK. Although only a few have changed their underwriting terms for new customers so far, we can see many following suit if cases in the UK continue to rise.”
Meanwhile, in a separate note, insurance industry fraud expert Horwich Farrelly offered insights as to the potential impact of COVID-19 on the holiday and insurance sector.
“History tells us that it will only be a matter of time before claims management companies and solicitors alike jump on the coronavirus bandwagon and start advertising for claims,” asserted Horwich Farrelly partner David Scott.
“Indeed, there are already a few firms of solicitors suggesting that people can be compensated if they become infected while abroad. But while it may be possible to successfully claim against a tour operator or hotelier for coronavirus, we anticipate that it’s going to be incredibly tough.”
Scott explained: “The reason being, even if the claimant is able to prove that they contracted the virus, they must also show that the travel company did something wrong and that this negligence caused or contributed to the illness or loss.”
The Horwich Farrelly partner added that the key would be determining whether a claim is genuine or fraudulent as the industry braces for the influx of claims.