Lloyd’s statement on UK COVID-19 grant funds
The Lloyd’s market has an important role to play in helping societies, businesses and individuals mitigate the impacts of the ongoing pandemic, and the payment of all valid claims is central to this.
In the UK, the Government has responded to the ongoing crisis through grant funds, providing an emergency financial lifeline to businesses struggling to survive; these include the Small Business Grants Fund, the Retail, Hospitality and Leisure Grant Fund and the Local Authority Discretionary Grant Fund, together with their equivalents in Scotland, Wales and Northern Ireland. The intent of this financial support is to help vulnerable businesses with their uninsured losses as they withstand the unprecedented implications of COVID-19 containment measures, including lockdowns and face-to-face trading restrictions.
Given the highly exceptional nature of the circumstances under which businesses have received government grant funds, it is Lloyd’s firm expectation that managing agents show their support by not deducting these funds from their business interruption claims calculations and resulting payments to customers.
We will issue more detailed guidance to the market over the coming days.