Has Your Business Interruption Claim Been Rejected Due To Coronavirus?
You May Want To Get A Second Opinion!

Business interruption claims submissions have recently skyrocketed due to the Coronavirus Pandemic. Although worryingly enough, most claims up to now have been rejected.

This is partly because insurers have claimed that Covid-19, as a new virus, is not covered in most business interruption insurance policies.

The good news is that due to a recent British High Court case ruling after the FCA got involved, the tide may be turning in favour of worried business owners. It appears that they may actually be covered after all.

Have you had a business interruption claim rejected by your insurer? Public Loss Adjusters offer expert business interruption claims help and are currently offering a free business insurance policy check.We Can Help With Your Business Interruption Claims

What is Business Interruption Insurance?

Firstly, it is important to understand what Business Interruption (BI) insurance is, the Chartered Insurance Institute define Business Interruption insurance as:

“Time loss, consequential loss and loss of profits insurance it provides cover for the financial losses due to an interruption to a business caused by material damage to property.”

BI Insurance is in place to help if your business or company suffers from any form of loss. For example, if your building had a small fire meaning that nobody could enter the premises, forcing you to shut down for a period.

Your BI Insurance cover helps you recover lost income until you are operational again. However, depending on your policy wording will depend on what or how much you are covered for.

Covid-19 and Business Interruption Insurance

Following the outbreak of Covid-19 and the population of the UK being told to stay at home, on the 17th March 2020 the Chancellor of the Exchequer, Rishi Sunak, announced financial measures for companies stating that:

“Businesses need support with their cashflow and fixed costs. Following the changed medical advice yesterday, there are concerns about the impact on pubs, clubs, theatres and other hospitality, leisure and retail venues. Let me confirm that, for those businesses which do have a policy that covers pandemics, the government’s action is sufficient and will allow businesses to make an insurance claim against their policy.”

However, many insurers placed large roadblocks meaning that many businesses have been unsuccessful in claiming on their insurance arising from lost of income due to Covid-19. Various businesses were being told that they were not covered due to Coronavirus not being a ‘notifiable disease’ despite the government adding it to the list on the 5th March 2020.

Insurers decided to judge their acceptance on a case by case policy, dependent on the wording in the insurance policy. Inevitably, countless insurance companies begin rejecting claim so not to share in the financial burden the virus has caused.

In September of 2020, the Financial Conduct Authority (FCA) brought a test case affecting around 370,000 small businesses over the wording of BI Insurance Policies. In a 160-page document Lord Justice Flaux and Mr Justice Butcher took into consideration 21 leading insurance policies.

Although different conclusions were met on some of the policies, the British High Court ruled in favour of the FCA on many of the key issues including that if Covid-19 was classed as a ‘notifiable disease’.

Free Covid-19 Business Interruption Claims Check

Free BI Claim Check

So What Does This Ruling Mean?

Although the September ruling brings welcomed news for business insurance policy holders it does not mean that their insurer must pay in every case. Each policy will need to be considered on an individual basis against the judgement. Policyholders should hear before the end of the month how this will affect them individually.

There is possibility of the insurers appealing the decision made by the High Court. However, should the appeal go ahead this does not stop the insured from settling their claim before an outcome is reached.

FCA Response

The FCA’s interim chief executive, Christopher Woolard stated that:

British High Court ruled in Favour of the FCA

“We brought the test case in order to resolve the lack of clarity and certainty that existed for many policyholders making business interruption claims and the wider market.”

Mr Woolard continued:

“We are pleased that the court has substantially found in favour of the arguments we presented on the majority of the key issues. Today’s judgment is a significant step in resolving the uncertainty being faced by policyholders.”

Insurers Response

In a statement online Huw Evans, the director general of the Association of British Insurers has said:

“Insurers have supported this fast-track court process led by the FCA to help bring clarity for customers, and we welcome the speed with which the court has delivered a ruling. The judgment divides evenly between insurers and policyholders on the main issues.

The national lockdown was an unprecedented situation that posed understandable questions of interpretation for some business insurance contracts. Insurers always regret any contract dispute with their customers and will continue to reflect on feedback from recent events. We recognize this continues to be a difficult time for many businesses, small and large, and for society as a whole.”

Public Loss Adjusters Response

It is Public Loss Adjusters belief that it is a fundamental principle of insurance that the policyholder is put back in the same position as they were before the loss.

At the start of the Covid-19 pandemic PLA set up a team of experts dealing exclusively with BI Insurance claims offering to review your policy wording, without charge or obligation.

Making a BI claim can often be a long-drawn-out system however we can help to determine if you have a valid claim to make enabling you to quickly get back to business.

National Helpline 08000 434 999

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Covid-19 Business Interruption Claims Help – Are You Covered?

Call Our 24 Hour BI Claim Helpline 08000 434 999

Not sure if your insurance policy covers Business Interruption due to the Coronavirus?

We have teams of experienced chartered accountants, in-house legal teams and chartered loss adjusters who specialise in Business Interruption Claims. 

If you would like Public Loss Adjusters to review your policy wording, without charge or obligation, we would be willing to assist you in determining whether cover for business interruption is available.

In the event that your policy is operative, we may be able to assist you in dealing with your claim.

Please fill in our BI Claim Check Form* and one of our experts will be in touch to see if we can help. If you can, please attach a copy of your insurance policy as this will help us to investigate more quickly.

*Due to high demand and low staff levels we are currently only offering a free policy check for businesses with a turnover of £10,000 per week or more. We apologise in advance if we cannot get back to you.

Free Covid-19 Business Interruption Claims Check*

    Free Covid-19 Business Interruption Claims Check

    Free BI Claim Check