Ecclesiastical under fire for following the word and not the spirit of the cover

The coronavirus pandemic has sent controversy swirling around the insurance sector as the recent issues surrounding Hiscox Insurance serve to illustrate – and now another company has come under fire.

The Sunday Times has published a letter from Mary Woolley in Lynton, Devon complaining that Ecclesiastical Insurance covers her local parish for losses resulting from infectious diseases, but that the policy document’s list of “acceptable” diseases includes smallpox and leprosy but not COVID-19. The policy also covers the parish for prevention of access by government, police or local authority, she said, but excludes closure due to infectious disease.

Woolley detailed how churches are required to be insured by the Church of England and this can be very expensive, as they are public buildings, and often old and listed. Parishioners cover the cost through collections at services and visitor donations, she said, and stated that insurance premiums come to nearly 20% of her parish’s total annual spending, but, with churches closed, there is no income.

“Ecclesiastical will not entertain a claim, following the word and not the spirit of the cover,” she said. “This is pretty rich, given that it is owned by the Allchurches Trust, a registered charity, which says it works for the ‘greater good of all’ and mentions ‘ethical financial services’. The Charity Commission needs to investigate, and the CofE should be leaning on it to act for the ‘good of all’.”

Insurance Business has reached out to Ecclesiastical for a comment on this claim from Woolley and will update this story later today.

Source: Insurance Business Uk