UP to 800,000 small businesses could be at risk of going under – even if a government lockdown gets the go ahead as many won't have insurance cover.
There are 5.8million small businesses in the UK, according to the Federation of Small Businesses (FSB), and around 800,000 in the retail, entertainment and recreation sector.
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It's these firms, and their 6million staff, that are likely to be particularly affected by Boris Johnson telling millions of people to avoid going out, and others to stay inside their homes for 12 weeks.
FSB national chairman Mike Cherry warns that many will be taking a "massive hit" because of the new social distancing measures.
Meanwhile trade body the British Beer and Pub Association (BBPA) says thousands of pubs, and hundreds of thousands of jobs "will be lost in days" without government action.
The Prime Minister, however, has stopped short of telling businesses to close, which means they can't claim for loss of income on their insurance.
But the Association of British Insurers (ABI) says this is typically an expensive add-on extra that only a "small minority of typically larger firms" have.
The trade body adds that so-called "small business interruption cover", which is what the majority of companies will have, doesn't include forced closure by authorities and is instead intended to cover physical damage that prevents trading, for example.
In a statement, a spokesperson said: "Irrespective of whether or not the government orders closure of a business, the vast majority of firms won't have purchased cover that will enable them to claim on their insurance to compensate for their business being closed by coronavirus."
The ABI is urging businesses to check what cover they have by talking to their insurer or broker.
In the meantime, trade bodies are calling on the government to hand out more cash to help struggling businesses.
A petition launched by Alex Claridge, a chef at The Wilderness in Birmingham, calling for the government to provide support to the hospitality industry has already amassed 129,000 signatures in less than 24 hours.
Chancellor Rishi Sunak is expected to unveil a further package of measures later today.
It comes after he already axed business rates for a year for half of small firms in last week's Budget.
He also promised a business rate discount of £1,000 for small pubs with a rateable value of below £100,000 will be increased to £5,000 for this year.
Mr Cherry said: “There are more than 800,000 small retail, entertainment and recreation firms in the UK, employing close to 6million people.
"Many will be taking a massive hit because of new social distancing measures. Some will have the right insurance to cover losses, but a lot will not.
"Clearly we need to see insurers and government working hand in glove to stop viable firms going under. Very substantial support is needed very urgently – we look forward to seeing what the chancellor delivers later today.”
Emma McClarkin, chief executive of the BBPA added: "Thousands of pubs and hundreds of thousands of jobs will be lost in the very short term unless a proactive package creating cash and liquidity is provided immediately to the industry.
"The absence of any financial commitment to stand behind all businesses including small community pubs is creating panic with people being fearful that their livelihoods will be destroyed."
The Sun has asked The Treasury for comment.
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