Following a landmark decision by the Supreme Court, many businesses in England and Wales could be due an insurance pay out for loss of income and disruption as a result of the first COVID-19 lockdown.
Legal help to support your claim
If you have already submitted a claim which was previously rejected by your insurance company, you should seek legal advice.
Our dispute resolution team can act on your behalf to ensure your business recovers the funds you are owed.
If you have yet to make a claim or are unsure whether you are eligible, we can review your policy contract and advise you on your prospects of recovering business interruption losses as a result of the court ruling.
Business interruption insurance FAQs
We understand that business interruption insurance policyholders affected by the Supreme Court’s recent decision have questions about how it affects them.
We have provided some brief answers below to help, but it is highly advised that you seek legal advice.
In most cases, those eligible for a payment under their policy should hear directly from their insurers.
The Financial Conduct Authority is working with insurers to ensure that they now move quickly to pay claims that the judgment says should be paid.
It has also asked affected insurers to contact relevant policyholders as quickly as they can to assess the claim.
If you believe you are eligible for a claim based on the Supreme Court’s ruling but haven’t been contacted you may wish to speak with your insurer at the earliest opportunity.
The ruling says that many factors need to be considered when assessing the value of a claim and the potential loss incurred by a business during the first lockdown.
The amount that each policyholder receives may depend on:
- Performance before the pandemic
- Impediments to trade
- Impediments to trade
- Cessation of trading due to COVID-19
Policies typically include clear definitions of how your losses will be calculated. This often differs from one insurance firm to the next, but will likely include:
- Calculations of gross profits and loss of revenue from the pandemic
- A total policy value
- A summary of additional costs that are covered
- The indemnity period
The impact of the Supreme Court ruling could have a very particular effect on your policy, depending on how it is worded, so it is important to seek legal advice.
Whether a business can claim or not will depend on the policy it held at the time of the lockdown and how the business was affected by Government advice or restrictions.
For new claims relating to the latest lockdowns, the insurance industry has said that most policies for new and renewing customers have already been amended and that losses from the latest lockdown measures would be clearly stated as part of the cover.