Business Interruption Claims

Does your insurance cover you for business interruption claims?

Business interruption claims - a store closed due to the coronavirus pandemic

On 15 September the High Court ruled against insurance companies who refused to pay out to business interruption claims. Are you affected?

Many businesses which were forced to close and/or suffered significant financial loss because of the coronavirus lockdown had their insurance claims refused on the grounds the situation wasn’t covered under their policy.

The Court considered 21 sample policies of the type insurance companies issue to SMEs. It looked at the key clauses which might entitle a business to make a valid claim. They relate to losses resulting from:

  • Disease – Cover in consequence of or following or arising from the occurrence of a notifiable disease within a specified radius of the insured premises
  • Prevention of access/public authority Cover where there has been prevention or hindrance of access to or use of the premises as a consequence of government or other authority action or restrictions
  • Hybrid conditions- Cover where restrictions are imposed on the policyholders.
  • Premises in relation to a notifiable disease 

The ruling was that policyholders might be entitled to payment for their losses especially those with policies including the “disease” or “hybrid” clauses.

It seems likely that insurance companies will appeal against the ruling. In the meantime, they should contact all policyholders affected by it within a week or two telling them what they plan to do.

If you don’t hear anything in that time frame contact your insurance company or broker.

How has your business been affected by the coronavirus pandemic? If you are concerned about the financial health of your business, get in touch for a consultation.

Because Finton Doyle is part of the Xeinadin Group, you have access to a far broader range of specialist services than ever before. But at the same time we have kept our independence, allowing us to maintain the same level of personal service for which we are well known.

Services we can now offer through the Xeinadin Group include:

  • Audits for companies, solicitors and charities
  • Company and personal financial recovery
  • Forensic accounting
  • Complex international tax matters
  • Corporate finance

More info is here.

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