Covid19 Business Interruption Insurance

You will have I am certain seen the headlines “SMALL BUSUINESSES HAVE WON COVID-19 INSURANCE PAYOUTS AFTER THE SUPREME COURT VICTORY “providing much needed financial support for businesses forced to close during the Covid-19 Pandemic and after the first lockdown in March 2020.

We have received an unprecedented number of calls from concerned clients, following this Supreme Court Ruling and are handling their enquiries on a case-by-case basis, we must apologise in advance if your enquiry has not been replied too in a timely manner.

To recap on the reason why the Financial Conduct Authority (FCA) who regulate the UK Insurance Industry, brought the court case against insurers was to seek clarity for policyholders where the wording includes a non-damage business interruption (BI) trigger. In all but a very few insurers policy wordings, this does not apply, and instead only damage-based cover and Notifiable Diseases is listed, of which Covid-19 is not listed!

Coverage in the event of a claim is determined by the specific terms of your policy, as set out in the policy wording. Policies usually provide cover for damage to your premises or against losses arising from business interruption due to a localised event. Common examples being fire or flood, or where access is impeded by a local disruption or event. Unfortunately, policies do not provide for BI cover against global events, such as Covid19 pandemic, or the governments action to control it.

That said I understand and fully appreciate that this is a disappointing outcome, especially at such a challenging time.

 I do urge you to continue to make contact with any queries or concerns, I would be pleased to review your individual policy cover, we are here to support you!.

Simon Allsop