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Issues with claiming business interruption insurance

28 April 2020 | Ken McEwan

Business Interruption Insurance

There has been much discussion among businesses who are suffering financial loss as a direct consequence of the Covid-19 lock down, particularly amongst those businesses which have been forced to close.  The entertainment and hospitality businesses have been especially hard hit. Many may not survive. Many have insurance cover that promises pay outs in the event of business interruption, but the insurers are not rushing over themselves to make payment on such policies. This has led to speculation of class actions being brought.

Policy detail

Such speculation, has, perhaps, been fueled by government statements on the subject.

For example, the Chancellor of the Exchequer has said, “… for those businesses which do have a policy that covers pandemics, the Government action is sufficient and will allow businesses to make an insurance claim against their policy.”

If only it were that simple. What can be claimed and in what circumstances, will depend on the facts and upon the wording of the individual policy. Such claims are more usually governed by extensions to policies rather than the general wording of the policies themselves and may not always be easy to interpret.

Some policies do cover the current situation, yet insurance companies are adopting a general refusal to pay out, particularly companies like Hiscox, QBE, Markel, RSA, CFC and MSAmlin.

Specialist litigation solicitors

If you have a policy with these insurers or any other insurers where they are refusing to pay out and you are concerned that they are avoiding their obligations, we can help.

At Gregg Latchams, our team of specialist litigation solicitors can provide an initial review of your policy. We offer this for a fixed fee of £500 +VAT to assess whether you are covered. To find out more please contact Ken McEwan or Richard Gore by calling 0117 906 9400 or email enquiries@gregglatchams.com

 

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

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