Service Business Interruption Insurance Claims
If you have tried to claim on your Business Interruption Insurance (BII) and been rejected or are considering doing, so then the Supreme Court ruling may be a lifeline to your Business.
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Many businesses have suffered a substantial loss of turnover and profits during the pandemic, and have been forced to cease trading and furlough staff. Your business insurance policy may provide your business with a financial lifeline.
Funding your claim
The Supreme Court Judgment - Business Interruption Insurance (BII) Claims
You may have a claim despite what your insurance provider may have previously told you.
The Supreme Court judgment handed down on the 15 January 2021 in the Financial Conduct Authority (FCA) v Arch Insurance (UK) Ltd & Ors (2020) EWHC 2448 (“the Arch Case”) is a welcome glimmer of hope for businesses who have tried to claim on their BII and been turned down.
If you have tried to make a claim on your Business Interruption Insurance (BII) in the past, or are thinking of making a claim for the first time, then we can help you.
Policyholders with questions should approach us for advice as soon as possible. You may have a claim despite what your insurance provider told you.
What is Business Interruption Insurance (BII)?
Your BII is designed to protect your business against financial loss, including loss of income, usually caused as a result of incidents such as a fire or flood. In the Arch Case the Supreme Court looked at clauses relating to:
- Infectious or notifiable diseases clauses -often within a specific radius of the business premises.
- Prevention of access clauses - where the business owner was forbidden from attending his business premises i.e. as a consequence of a national or local lockdown.
- Hybrid clauses – that relate to both restrictions on the access to business premises and to issues involving a notifiable disease
What did the Supreme Court decide in the Arch Case?
The Supreme Court ruled that cover may be available for partial and full closure of premises as well as mandatory closure orders. Furthermore, valid claims should not be reduced because the loss would have resulted in any event due to the pandemic. This will mean that more policyholders will have valid claims and some pay-outs will be substantiallyhigher.
The judgment brings to an end legal arguments under 14 types of policy issued by six insurers, and a substantial number of similar policies in the wider market which will now lead to claims being successful. The decision opens the door to the potential recovery of large losses as a result of the Covid-19 pandemic and the public health measures taken by the UK authorities.
Can I just claim directly from my insurer?
In a word, "yes" you can.
However the test case was not intended to encompass all possible disputes, but to resolve some key contractual uncertainties and ‘causation’ issues to provide clarity for policyholders and insurers.
This means that the wording of each policy needs to be considered carefully to work out what it means for your specific case.
Insurers are still likely to refuse to cooperate, or may significantly undervalue what your claim is actually worth. Why take the risk of negotiating with your insurers directly?
Policyholders with questions should approach us for advice as soon as possible. We can explain the process and any pitfalls, advise you as to your next steps and if appropriate prepare your case for Court.
What documents will I need to send you?
In order to pursue a claim we will initially ask you for details on the type of business you operate, your insurance policy and schedule, and evidence of the loss of revenue caused as a result of being forced to close during lockdown.
Our specialist insurance lawyer can review your business insurance policy documents free of charge and without any obligation.
For more information call us today on 0300 303 3819.
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