Our team of experts can help you access the financial support your business needs now. We can determine whether you have coverage and guide you through the claims process, giving you:
- Access to specialists in business interruption insurance claims.
- A service with no hidden charges.
- No win, no fee claims, meaning you will not be out of pocket!
How does business insurance typically work?
Business interruption insurance is designed to cover your business for loss of income in periods when you cannot carry out business as usual, due to an unexpected event. It is worth checking through your business insurance policy, as sometimes business interruption insurance can be included in your package. The usual events covered in this policy are incidents such as fires, storms, flooding or breakdown of essential equipment.
When such events happen, your business interruption insurance policy allows you to get back on track and reset your business to the same trading position as it was in prior to the insured event. This policy will also compensate your business for any shortfall in profits, damages, or increased costs due to the events.
How does business interruption insurance work with COVID-19?
There are two clauses that have been of particular interest during the pandemic, which are the ‘Infectious or Notifiable Disease’ clauses and ‘Prevention of Access or Public Authority restriction’ clauses. As COVID-19 is an entirely new type of event, there have been disputed claims amongst some insurers, whilst others have accepted liability.
There have been arguments from insurers that the unprecedented national lockdown was not an insurable event. Other insurance companies have issued blank denials of cover, due to strict wording in policies, where cover would only be provided when there was a local occurrence of a notifiable disease, rather than the nationwide spread of COVID-19.
Last month, the Judgement by the Supreme Court was in favour of policyholders on 12 out of 21 terms and has brought clarity to many disputed claims, which is positive news for many policyholders. The clarity was on policy wordings, which were split into three categories:
- – Infectious or Notifiable Disease wordings: These clauses are those which provide cover arising from the occurrence of a ‘notifiable disease’, sometimes within a specified radius of the business premises, or within the actual vicinity of the business premises.
- – Prevention of Access/Public Authority wordings: These clauses are those which provide cover in circumstances where access to the business premises has been prevented, as a result of Government action.
- – Hybrid wordings: These clauses are those which include provisions involving restrictions imposed on business premises in relation to a notifiable disease.
There are several encouraging findings in the Judgment for policyholders, particularly for those with policies which include Disease wordings. The FCA estimates that some 700 types of policies across 60 different insurers could potentially be affected by the Judgment. According to the BBC, the Judgment has the potential to affect 370,000 policyholders, mostly small businesses.
Whether you have been rejected for a claim, or are yet to claim, it is very important to be properly prepared and have your claim as accurate and detailed as possible. Our specialist legal experts at MJW Law have years of experience in presenting claims to insurers and the Ombudsman (after a claim has been rejected).
Call 0333 456 6611 today to speak to our friendly team and get the advice you need to help your business through any interruption it has had through the pandemic.