Redundancy due to covid triggers insurance

The Insurance Ombudsman (IFSO) has upheld a complaint from an insured who was turned down for cover under their payment insurance when they were made redundant.

The insurance contract included an exception if a redundancy was due to a state of emergency.  A state of emergency due to covid was declared by the Government from 25 March to 13 May 2020.

Luckily for the insured they were not made redundant until August 2020.  The Ombudsman held that the redundancy was not due to the state of emergency and therefore the policy should have responded to her claim.  The insurer agreed to pay based on the IFSO decision.

It pays to seek advice from a professional experienced in the area if you have any concerns about your insurance policy or claim.

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