I tend to agree with this comment. Interestingly Chubb in the US...

I tend to agree with this comment. Interestingly Chubb in the US has not had a massive sell off (its in line with the broader market) and would be greatly impacted by any retrospective policy claims for events that were not specifically provided for in the policy.

My experience with the insurance act is that all sides have to provide full disclosure for a claim to be paid. If the policy does not specifically provide for a pandemic, then I don't believe the policy covers that risk. The policy will normally cover destruction events like fire, stock loss, destruction (terrorism) or key person insurance. If the key person gets the virus, the business would be covered I expect but if the business interruption is caused by the Govt banning the business from opening for a time, then I am of the view that is a risk policies have not been designed to cover.

The issue to me is whether the Insurance Company is acting in utmost good faith in charging and pricing the premium. I think they are as no policy design would have considered a pandemic as a risk they wanted covered before now in most western economies. I reckon this will change though and big business will want it (which creates an opportunity).

I intend to take up the SPP.