Insurers pitch billion Pula plan to 'Corona-proof' economy

Despite the coronavirus wrecking havoc through business interruptions and loss of incomes, local companies have largely been unable to claim due to “coverage gaps” in the policies they subscribe to, as currently offered by short-term insurers.

Under the policies most common in the market, companies have not been able to claim against the pandemic’s effects as claims for events such as business interruption require “direct physical damage or loss” caused by an insured event on the business or asset insured. For example, a business hoping to claim under business interruption, would have to prove that the coronavirus caused fire or flood damage to their property.