Supreme Court rules on business insurance policies

According to the Supreme Court, if you had business interruption insurance policies in place when government restrictions were put on trading because of coronavirus, you might be entitled to a payout. What does the latest ruling mean for you?

In September 2020 the High Court ruled against insurance companies which refused to pay out on claims made on business insurance policies for business interruption. This gave insured businesses the right to take their case to the Supreme Court.

Business insurance policies - a policy document on a desk

Recently we reported about how, following a ruling in the Supreme Court, many small businesses could now receive payments from business interruption policies from insurance claims for Covid.

The judgment applies to policies which include any of the following clauses.

  • Disease. This is for the consequences of the occurrence of a notifiable disease within a specified radius of your business premises.
  • Prevention of access. This is cover where there’s been prevention or hindrance of access to or use of your business premises because of central government or another authority’s action or restrictions.
  • Hybrid conditions. This refers to cover which is a hybrid of the first two categories, where restrictions are imposed on your business premises because of a notifiable disease.

The Supreme Court agreed with most aspects of the earlier ruling. This means that if your business suffered loss of income because it was unable to use its premises, or because of other trading restrictions resulting from the government guidance, you’re entitled to be compensated by your insurance company as long as coronavirus was identified in your area. 

If you made a claim under a business interruption policy of the type covered by this ruling, you can expect to hear from your insurer in the next few weeks inviting you to provide proof of your losses. If you’re unsure whether you’re covered get in touch with your insurance company straightaway.

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