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From the
https://www.kentlive.news By Stela Gineva, 21 March 2020.
Kent coronavirus: The cruel insurance rule which could shut popular Dover pub forever.
Debbie and Keith Lane ploughed their life savings and a pension into the
pub five years ago, and it may all be for nothing.
Mr and Mrs Lane are among thousands of businesses who are unsure as to
how the future of their livelihood will pan out.
A Dover pub landlady is distraught at the prospect of losing her
livelihood after her insurance company told her she will not be able to
claim during the coronavirus lockdown.
Debbie Lane opened the Lanes Micropub in Worthington Street five years
ago and since then business has been flowing.
But the publican has already felt the pinch as government advice warned
people to stay away from pubs, clubs and restaurants.
It can be busy on Wednesdays as it is the day when lots of people
working on the boats in the port changeover as they finish their shifts.
Coming in for a pint before they head home has become something of a
tradition.
But not this Wednesday (March 18), when the 20 odd people who usually
visit the pub went straight home as per government advice to avoid pubs
and restaurants.
Then, just last night (March 20) Prime Minister Boris Johnson made the
announcement that all pubs, clubs, gyms and leisure centres are to close
with immediate effect.
Debbie added: “People are very scared and you can’t blame them.”
Debbie, like most business owners, took out insurance to protect her
business against unexpected situations such as this one.
She even purchased a ‘business interruption’ package from Zurich, her
insurance provider.
This covers disruption by a number of infectious diseases.
However, when Debbie went to seek advice from her insurance broker about
eventually making a claim, she was stunned to hear there will be no
payout.
She said: “I went in to see whether it’s best I close when the
government tells us we have to close, or if I should close now when
they’re advising people not to go into pubs and restaurants.
“I wanted to know what was best for making a claim on my insurance.
“And they said that it doesn’t make any difference what I do because I’m
not covered.
"And I said ‘you’re joking!’ and they said no, because it’s not actually
one of the named diseases.”
The news came as a shock to the landlady who employs her husband, Keith
Lane, as well.
This is their only source of income.
'When I found out, I cried'
She said: “I’ll be honest, when I found out I cried. I thought I paid
all this money and I would be covered.
“I don’t think insurance companies are fair. They take your money and
always, always wriggle out.
“If it hadn’t been this, if they were allowed to say it’s an ‘act of
God’, I reckon they were going to say that.
“That’s how they get out of not paying things. Now because not as many
people believe in God, they find other ways of not paying out.”
Debbie didn’t have to take out a loan to start her business.
Her husband left his job and took a pension lump sum pay out a few years
ago which allowed them to open the pub.
They put their life savings into the pub which has become a hub for the
community.
She added: “This is my whole livelihood here, this is my life. I love my
pub.
“My pub isn’t only my business, it’s my social life and everything and
it just doesn’t seem possible that one moment you’re looking forward to
different things and then it’s all taken away.
“Everyone is in the same situation as I am. We are all fighting in our
families and trying to figure out what’s best to do.”
The landlady believes pubs have an important part in the community and
can make a difference. She said: “Every pub is an important part of the
community.
“When my regulars don’t come in, I call them to make sure they’re okay,
I’ve taken them to the hospital, done shopping for them, it’s things
like that - this is what landladies and landlords do, we know our
community.
“A few of my customers have called me today to let me know they’re
alright or if they need anything I try to get it for them.”
After the shocking news from her insurance company, Debbie is unsure how
to proceed. She is hoping a government grant might be available to her
to help her with running costs, if not she may have to consider a loan.
She said: “This is a position I never thought I’d find myself in.
“To borrow money when you can’t guarantee it’ll be coming in isn’t ideal
and I don’t think anyone should do that.
“We weren’t planning on retiring for another five years at least and by
then things should have been fine.
“It’s just the two of us. This is the only income we have. We put our
life savings into the pub.”
A Zurich spokesman confirmed that while the insurance company provides
business interruption coverage, including specified, notifiable diseases
linked to the premises, this never includes diseases linked to
pandemics.
The spokesman added: “Zurich’s policies have never included diseases
linked to pandemic such as SARs, Avian Flu or Coronavirus due to the
difficulty of insurers being able to quantify the potential risk.
“As a result, and in common with the rest of the insurance market, the
vast majority of Zurich policies would not provide business interruption
cover for the coronavirus.
“Zurich does have a small number of policies which would provide cover
for any infectious disease.
“However, even where government action allows for businesses to make an
insurance claim against their policy, cover would usually only apply
when the disease was present at the premises or in the surrounding
area.”
Zurich insisted their policy on coronavirus is the same as other
insurance companies across the industry.
A spokesperson for the Association of British Insurers (ABI) described
the spread of coronavirus as ‘unprecedented in modern times’.
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