Back in April we had some interesting discussions regarding whether you could claim for business interruption from your insurer, which led to many small businesses looking at their policy and beginning a claim. Many were rejected or still in motion… But we finally have some good news.

Recently, the Supreme Court ruled in favour for small businesses with business interruption insurance and gave many a glimmer of hope in the latest national lockdown.

As Roger Franklin, Head of Insurance Litigation at Edwin Coe LLP said, “This is an important and keenly awaited decision for the many thousands of commercial policyholders seeking to recover losses caused by Covid-19.  It’s been a desperate time for small businesses, and this positive judgment is like the arrival of a financial vaccine for them.”

If you have business interruption insurance and have already made a claim – that was previously rejected or is in progress – it would be best to follow up with your insurer to understand what impact the latest ruling has.

If you haven’t yet made a claim and have business interruption insurance, check your policy carefully and speak to your insurer now. Just because you have business interruption insurance, doesn’t mean you will be eligible for a pay out so do keep this in mind – it isn’t as clear cut as the headlines are reporting. This latest ruling however will provide a vital lifeline to ensure many small businesses can open once the latest lockdown restrictions are eased.

The risk of course is that this is going to be a significant hit to the insurance industry and once we are through the Covid crisis, we expect insurance premiums will rise.

If you need any support with any of the above, get in touch with us and we’d be more than happy to help in any way we can. 

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