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The Salvation Army
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The spread of Coronavirus is unprecedented in modern times and we understand this is an incredibly difficult time for families and businesses.

If you have any queries regarding the cover under your policy that are not answered by the information provided below then please contact the broker who issued your policy or if issued by SAGIC direct then please email commercial@sagic.co.uk.

Given the current circumstance, we are currently receiving a high volume of queries and will look to respond as soon as possible, however, there may be delays in replying to enquiries, therefore, please accept our apologies for this.

Business Interruption Claims – Supreme Court Update

Following the ruling from the Supreme Court on Friday 15th January 2021, we have received several enquiries concerning the impact that decision will have on Business Interruption claims under policies issued by SAGIC.

In July 2020, as required by the FCA, SAGIC carried out a full legal review of all our policy wordings that include Non-Damage Business Interruption cover.

We have reviewed these wordings again considering the FCA test case on which the Supreme Court has now ruled and can confirm that our original advice has not changed.  The cover provided by SAGIC policies is not affected by the test case outcomes.

Where Non-Damage Business Interruption cover is included within a SAGIC policy we provide cover for the following: –

i. Murder, Suicide, Disease or Food Poisoning

  • Murder or suicide on the premises.
  • An outbreak at the premises of any human infectious or contagious diseases (but not Acquired Immune Deficiency Syndrome (AIDS) or an AIDS related condition) notifiable to the public health authorities.
  • Poisoning caused by food or drink provided by you at the premises.


ii. Denial of Access

Use of or access to the premises being hindered or denied due to damage by an insured event in the vicinity of the premises.

Note that cover under ii. Denial of Access, above, requires there to be another insured event in the vicinity of the premises, the only insured event that would cover losses due to Covid-19 is number i. Murder, Suicide, Disease or Food Poisoning above, and this requires an outbreak of a contagious disease at the premises.

The SAGIC wording is clear in that we only cover claims where there has been a confirmed incidence at the business premises, and any claim would only be for the duration of the incidence.

The FCA confirmed that the wording SAGIC uses in its policies was not in dispute in respect of the test case when it finalised it guidance for firms: –

The test case is not seeking to resolve, in particular:

  • coverage issues relating to clauses which require the disease to be present on the insured premises.


Given that SAGIC policies provide cover for losses relating to Pandemics when there is an incidence at the insured premises, we confirm that there is no cover under any other section of our policy in relation to losses resulting from Covid-19, and/or the subsequent restrictions imposed by the UK Government.

We hope this provides clarity as to the general position.  We will of course continue to assess the individual circumstances of any claims we receive based on their specific merits and the policy cover. For any further information then please contact our claims team on claims@sagic.co.uk


Government Restrictions

Following the recent developments in the Government’s response to the pandemic and with a ‘lock down’ now imposed in England we feel it is best to give you some more long-term guidance which is as flexible as possible given the ever-changing situation.

We would at all time recommend you follow Government guidelines; further information is available at:-


For all existing SAGIC policies any restrictions relating to a building being closed or unoccupied will not apply if the reason for this is related to government restrictions. We would ask you in all cases to adhere to the following guidelines regarding management of unoccupied or unused properties:-

The water supplies are turned off at the mains (and all water tanks, pipes and apparatus are drained) unless required to operate an automatically operated central heating system used to maintain a minimum temperature of 58°F (15°C) at all times, and all external doors and all windows are securely locked, and all physical devices for securing and preventing access to the building are put into effect upon leaving the building, and your building is visited by a responsible adult every 7 days, and a log is kept of these visits.

The above will apply from now until the 31st March 2021 at which point a further update will follow. Hopefully this will provide some reassurance whilst also ensuring the premises remains as safe and secure as possible.

Page Last Updated: 19th January 2021