Hospitality industry to bleed more jobs because of refused insurance claims

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The hospitality industry will lose many more jobs through the Covid-19 pandemic because insurance companies have rejected Covid-19 related Business Interruption insurance claims. busrep

The hospitality industry will lose many more jobs through the Covid-19 pandemic because insurance companies have rejected Covid-19 related Business Interruption insurance claims, a leading industry representative organisation for the sector said yesterday.

“They have been paying their premiums, and when the pandemic hit, believed that these policy payouts would be the much-needed lifeline they had planned for, only to discover that their insurers walked away from their legal obligations,” said Zama. “Our view, from the onset of the pandemic, on the business interruption policies with the cover extension for pandemics, is that they are covered and that we needed to get cash to the businesses with the right cover in place as soon as possible. We understand cash flow is king for small and medium businesses,” said Louw.

 

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OUTsurance pays out Covid-19 business interruption claimsReserves R220m for such claims, with R37m already reimbursed mainly to hard-hit tourism and hospitality businesses.
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