COVID-19 and business interruption insurance

Can your business make a claim for business interruption loss?

The Supreme Court’s ruling in the FCA Test Case has provided clarity and hope for thousands of businesses and organisations affected by the COVID-19 pandemic. We have reported on the legal issues of the test case as it progressed through the High Court and most recently following its conclusion in the Supreme Court.

The true impact of the judgment will depend on the wording of each individual policy and therefore it would be naïve of business owners to sit back and assume that the Supreme Court ruling will result in its insurer paying out without dispute. The judgment dealt with a very small sample of policies and the reality therefore is that several thousands of claims will be based on policies which may not fit neatly into the 21 policies considered.

Having your policy reviewed by our dedicated Business Interruption team is therefore something which you should strongly consider as a matter of urgency.

So what should you do next?

You may not have even considered whether you have business interruption insurance cover. You may have had your policy reviewed last year or a claim denied prior to or even following the Supreme Court ruling. Or you may not have investigated the possibility of policy coverage, having consciously delayed the decision pending the outcome of the Supreme Court hearing. If you think any of the above apply to your business or organisation, then we recommend that you contact us.

Our dedicated Business Interruption team have followed the FCA’s Test case from the start and are eager to help you in what has been and continues to be a very disruptive, financially challenging and uncertain period. The team can conduct an initial review of your policy and provide advice on the merits of any claim under the policy to assist you in deciding whether to pursue a claim against your insurer.