Sunday, 5 May 2024

Coronavirus compensation: Can YOU claim compensation from Government over COVID-19?

Coronavirus cases in the UK are growing by the day, with two new cases declared in Scotland on Wednesday morning, pushing the total in the UK to 53. On Tuesday, Prime Minister Boris Johnson announced the Government’s four-phase plan to tackle the coronavirus spread. 

Currently, the focus is on containment, with contact tracing underway for those who may have come into contact with infected people. 

In a press conference on Tuesday, Mr Johnson laid out the Government’s plans, however, said it was too soon to say whether schools would be closed or large-scale events cancelled. 

Health Secretary Matt Hancock said it is “far too early” to cancel or restrict participation in the London Marathon as part of the Government’s coronavirus containment strategy.

However, with statistics showing up to one in five workers in the UK could be off sick during a coronavirus peak – can businesses get compensation? 

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Can you claim compensation from Government over COVID-19?

The Government has now declared COVID-19 as a “notifiable disease” meaning insurance policies for businesses will now accept cancellations due to coronavirus as valid.

A Department of Health and Social Care (DHSC) spokesman told the BBC: “To mitigate the impact on businesses, we will register COVID-19 as a notifiable disease.

“This will help companies seek compensation through their insurance policies in the event of any cancellations they may have to make as a result of the spread of the virus.”

Previously businesses across the UK had cautioned the expected losses from coronavirus were at risk of not being covered under insurance policy classifications. 

The change to “notifiable disease” now means businesses can claim for compensation if they are impacted by coronavirus. 

Diane Howarth, who runs a small holiday cottage business in the Yorkshire Dales called Cottage in the Dales, told the BBC she looked to lose up to £8,000 in forward bookings.

She said: “We’re a small family business. I’m owed £8,000 in overseas bookings – 10 percent of my turnover – in the next six weeks from guests arriving in June. 

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“If they cancel, and I can’t claim, that would be catastrophic for us, and many other businesses in the same position.”

Despite the Government saying the UK is not at the stage to cancel large-scale events, some event organisers have taken it upon themselves to cancel. 

Mr Johnson did not announce any changes to sick pay during the press conference.

Sick pay is given to people in self-isolation if the isolation was requested by the NHS, but only for those who earn more than £118 a week.

However, changes to sick pay were not ruled out with the Prime Minister saying:  “We’re going to keep all options under review but we’re well aware of the issue.”

The London Book Fair due to take place from March 10 to 12 has been cancelled by organisers over the escalation of coronavirus in Europe.

A statement from Reed Exhibitions on Twitter said: “The effects, actual and projected, of coronavirus are becoming evident across all aspects of our lives here in the UK and across the world, with many of our participants facing travel restrictions.

“We have been following UK Government guidelines and working with the rolling advice from the public health authorities and other organisations, and so it is with reluctance that we have taken the decision not to go ahead with this year’s event.

“We recognise that business has to continue.

“With this in mind, we will of course support and collaborate with exhibitors and visitors to keep our world moving during this difficult period.

“We thank all those from the UK and a multitude of other countries who have prepared over the last year to deliver what promised to be a wonderful book fair showcasing, as ever, the exciting best of the global book industry.

“The London Book Fair will return, better than ever, in 2021.”

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