Monday | 18 May | 2020
By Sanette Viljoen
All of us know that the lockdown period until the end of April this year was compulsory and that only a few businesses were regarded as essential services. From 1 May certain businesses could open their doors again, but for many other businesses the struggle was far from over. The result was that most businesses had to remain closed for this period and still have to remain closed, which results in a loss of income. There are certain businesses and individuals that at least have the luxury of working from home. However, this is not a luxury that many other businesses currently enjoy and some of them are very dependent on the physical premises of the undertaking itself.
The question now arises whether your insurance will cover the loss of income of your business. The answer is not so simple because the answer is based more on factual information than legal information and therefore depends only on the specific provisions of your insurance contract.
Other aspects that have to be taken into consideration, is that insurance contracts usually:
- propose a specific timeframe within which you have to submit your claim (usually 30 days after the start of each event; this, however, depends on the phrasing of the contract);
- lay down a long list of requirements that you have to satisfy; and
- have a built-in limitation-of-liability clause.
It is therefore of cardinal importance to obtain legal advice as soon as possible to find out whether your insurance contract covers your specific loss of income and to make sure that you satisfy the requirements in time to prevent disappointment.
It is also advisable to obtain legal advice to make sure that the contract makes adequate provision for your specific needs. The purpose of an insurance contract is to cover you against risk, in exchange for which you pay the monthly premiums. See to it that the premiums are not paid in vain and that you are covered when you need it most.
* All information was correct at the time of publication.