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Lost resorts: Sanlam reveals why hospitality firms aren’t being ...


Lost resorts: Sanlam reveals why hospitality firms aren’t being paid out

Even if they have cover for epidemics in their policies, there’s a loophole that means many will get no cash

Consumer journalist

The hospitality industry has been crippled by the restrictions imposed by the coronavirus pandemic, restaurants, guest houses and B&Bs having lost earnings for some time before the March 27 lockdown.

Many had business interruption policies which didn’t include an infectious diseases clause, so they had no claim, but even for those who did — specifically Covid-19 clauses — their relief was short-lived.

Warwick Graham, who owns a guest house in Westville, KwaZulu-Natal, is one of them. His Santam business interruption policy states that claimable events include his business being interrupted by a “notifiable disease occurring at the premises, or within a 50km radius of it”...

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