COVID-19 Update 2nd February 2021

• FCA Business Interruption Policy Checker and FAQ

Following the Supreme Court test case on a range of business Interruption insurance policies, the FCA has produced a Policy Checker which takes businesses through a process whereby they can check to see whether their insurance policy covers business interruption losses due to coronavirus. It should be noted that each claim will still need to be individually considered to determine whether the policy provides cover for the effects of coronavirus. Policyholders will need to check:

• • the extent of their cover including how long it covers them for (length of their indemnity period)
  • what losses are included – such as loss of profit, fixed costs or increased costs of working

https://www.fca.org.uk/decision-tree/business-interruption-insurance-policy-checker

In addition to the Policy Checker, the FCA have also developed a FAQs which gives business further information on:

• • How to make a claim
  • The disease clauses in policies
  • What to do if they have already made a claim or complaint
  • What they can claim for.

https://www.fca.org.uk/firms/business-interruption-insurance-policy-checker/general-faqs-policyholders

 

• CBIL Repayment Extensions

In September last year the Chancellor announced that, as part of him winter economy place to support businesses, he was going to give Coronavirus Business Interruption Loan Scheme lenders the ability to extend the length of loans from a maximum of six years to ten years.

https://www.gov.uk/government/news/chancellor-outlines-winter-economy-plan

However, I am getting reports that lenders are refusing to extend the repayment period of some businesses’ CBIL loans from 6 to 10 years. I’ve raised this with DCMS and they are keen to know whether this is an isolated problem or something that is occurring across the industry. So, if any of your members are experiencing problems extending their CBIL loan, could you please let me know.

 

• Christmas Support Payment

BEIS has announced that the deadline for applications for the Christmas Support Payment has been extended to 28 February 2021. This is the payment to wet-led pubs that were severely impacted by the restrictions over the Xmas period. To be eligible a pub must:

• • Be based in England
  • Derive less than 50% of its sales from food
  • Be in an area subject to Tier 2 or Tier 3 local restrictions since 2 December 2020
  • Have been established before 1 December 2020

https://www.gov.uk/guidance/check-if-youre-eligible-for-the-christmas-support-payment-for-wet-led-pubs

 

• Lockdown Guidance Updated

The lockdown guidance has been updated to include electioneering as a reasonable excuse as to why someone can leave their home.

https://www.gov.uk/guidance/national-lockdown-stay-at-home

 

• Travel Guidance Updated

The travel guidance has been updated to bring it into line with the Government’s announcement last week of a ban on travelling overseas. The guidance now states that people must not travel, including abroad, unless they have a legally permitted reason to do so. It is illegal to travel abroad for holidays and other leisure purposes.

https://www.gov.uk/guidance/travel-advice-novel-coronavirus

 

• Penalty Notices Doubled

The Government has passed an amendment to Health Protection (Coronavirus, Restrictions) (All Tiers) (England) Regulations 2020s doubling the fixed penalty notice issued to a person in respect of a large gathering offence. A large gathering is defined as 15 people inside a dwelling. The fines are now:

• • £800 – or £400 if the amount is paid within 14 days.

Then

• • £1,600 for second offence
  • £3,200 for a third offence
  • £6,400 for any further offences

https://www.legislation.gov.uk/uksi/2021/97/contents/made