Mr Murray, who ran his own pubs in Scotland before entering Parliament, has written to BEIS Secretary Alok Sharma to outline widespread concerns in the industry.

Because the Government has not ordered them to close, most hospitality venues will not be automatically entitled to insurance payouts.

It has been reported that the Association of British Insurers has warned that standard business interruption cover - which most firms purchase - does not include forced closure by authorities, and Mr Murray will also raise this with the insurance profession and urge firms to show leniency.

Mr Murray has also said the government must support workers in the sector, many of whom are on zero-hour contracts.

He has welcomed the government’s commitment to an economic rescue package, but said there should also be a community-led approach and has encouraged a conversation about ideas such as purchasing gift vouchers to help businesses with the cash flow crisis.

In his letter, Ian Murray, MP for Edinburgh South, wrote: “I know from my own experience that the overwhelming majority of independent businesses do not have large cash reserves and many only survive week-to-week. Their cash flow problem isn’t one that’s going to be felt in months – it is likely to be felt within days.

“Following the government’s advice, many establishments which have served their communities for decades will simply close and never be able to re-open.

“This will result in the loss of tens of thousands of jobs, destroying livelihoods, isolating communities, and leading to a wider negative impact on the economy. The impact on staff who are on zero or short hours contracts, hospitality staff, freelancers and associated businesses is considerable.

“If the government is asking businesses to support their staff over the period, then the government has to support them to do so. Urgent action is needed.

“I am therefore calling on the UK Government to do the right thing by Britain’s small businessowners and formally order the closure of pubs, clubs, cafés and restaurants to ensure they can make a compensation claim from their insurance supplier.”

He continued: “Even with formal closures, compensation may depend on the type of insurance purchased. I urge insurance firms to show leniency in these unprecedented times, and help ensure the survival of businesses on which the industry relies.”