Hiscox Ltd (LON:HSX) has confirmed that some small business customers are disputing the cover provided by their business interruption policies during the coronavirus lockdown.
The insurer repeated that its policies for small companies do not cover the pandemic, but said it would work with regulators and the industry to expedite the settlement of these disputes.
Hiscox said 10,000 customers that purchased cover for business interruption had been directly impacted by the UK government's coronavirus lockdown.
“Like others in the industry, Hiscox UK's core small commercial package policies do not provide cover for business interruption as a result of the general measures taken by the UK government in response to a pandemic,” it said.
The FTSE 250 group added that it expects to pay out US$150mln of claims for cancelled events, entertainment and travel up until September and a further US$25mln if the lockdown extends for longer.