“Santam told us they want certainty through the legal process. They’re not willing to deal with this issue on an urgent basis, which means they will fight a war of attrition. It’s a case of delay, deny and defend. And if your business closes, you have no case. It’s disappointing.” Specialist business interruption insurance for hospitality and tourism industries includes extensions for claims arising from infectious or contagious notifiable diseases.
Fighting the claims in court is likely to lead to a drawn-out process that could spell disaster for the industry. “If you submit an insurance claim and it’s rejected, there are contractual terms limiting your ability to sue the company. The larger problem – and matter of urgency – is to get a moratorium on time lines from the regulators, such as the Financial Sector Conduct Authority, and relevant ministries, due to the Covid-19 lockdown.”