LEXLAW Solicitors & Barristers
Does your insurance policy provide coverage for business interruption as a result of the pandemic? The quickest way to find out is to send our Business Interruption Insurance solicitors your policy and book an advice meeting with our Solicitors and Barristers.
On 15 January 2021, the Supreme Court handed down its ruling in the FCA test case on business interruption insurance against six insurers . Many businesses will now be considering the next steps whilst waiting for their insurers to assess their case. The FCA has issued a letter setting out the next steps encouraging insurers to reassess, progress and settle claims quickly in light of the ruling.
The Supreme Court Business Interruption Insurance (BII) test case has brought clarity to policyholders who have been affected by COVID-19 and have previously been denied BII cover by their insurers. This is causing insurers to reassess policyholders’ disputes on a case by case basis. If you are an affected business, you should seek legal advice as soon as possible and our specialist financial services litigation team can be instructed to assist.
Business interruption insurance covers businesses for loss of income during periods when the business cannot trade as usual due to an unexpected event. If you are a policyholder and your insurer is refusing to paying out for a business interruption claim related to the coronavirus pandemic, seek legal advice immediately as you may have a litigation claim to seek financial redress.
The FCA’s draft guidance on how to prove the presence of coronavirus (COVID-19) in a particular area around premises based on the High Court’s judgement and declarations is essential for policyholders in claims against insurers.
A “leapfrog” appeal to the Supreme Court may be the quickest route to get legal clarity for all parties. It is is essential that you seek expert legal advice early in order to prepare your Business Interruption Insurance claim.
Policyholders with affected claims can expect to hear from their insurers within the next 7 days. Given the complexity of business interruption claims and the legal uncertainty surrounding their enforcement, it is is essential that you seek expert legal advice early in order to prepare your Business Interruption Insurance claim.
The FCA’s test case is likely to be the quickest route to clarity on whether losses caused by Covid-19 are covered by Business Interruption insurance. Most SME insurance policies are focused on property damage (and only have basic cover for BI as a consequence of property damage) so, at least in the majority of cases, insurers are not obliged to pay out in relation to the coronavirus pandemic. This case is focused on the remainder of policies that could be argued to include cover.
Given the complexity of business interruption claims and the legal uncertainty surrounding their enforcement (the FCA have issued a test case recently in the High Court), it is advisable that you seek expert legal advice early in order to prepare your Business Interruption Insurance claim.