Business interruption insurance
Business Interruption Insurance
Business interruption cases are a relatively new area of claims for the legal profession and have mainly come about because of the Covid-19 pandemic.
Many businesses were forced to close their doors to trade altogether and some in various other ways meaning that they have seen a significant reduction in profit or income and together with substantially increased running costs have left many businesses struggling to stay afloat. Indeed, many businesses have also gone out of business as a direct result.
Business owners who believed that they would be covered by their business interruption policies were left in shock when their genuine losses arising from the Covid19 pandemic were rejected, and were told by their insurers that they were not covered under their policies.
Whilst this judgement is a positive result for claimants in principle, it failed to address the detail in how claims should be calculated (should government grants, the furlough scheme, SEISS, bounce back loans, etc. be considered) and as a result many businesses have a much different view on what the losses actually incurred are compared to those their insurance company has offered. Whilst complaints can be lodged with Ombudsman, the sheer volume of cases mean that some businesses cannot afford to wait for the process and must resort to legal action as the fastest and sometimes only way to recover the compensation that they should be entitled to under their business interruption policy.
If you have a claimant who has attempted to negotiate with their insurer to pay out a legitimate business interruption claim and it has been disputed or rejected, your next course of action will be to issue legal proceedings against that insurer.
If you are a lawyer with clients that have a business interruption case that you would like to pursue on their behalf, you need to talk to us. We can help to find for you an After the Event insurance solution that will help to meet your clients’ needs.
If your practice is seeking a fast, simple, online facility with competitive premiums you should contact us. If you require a quotation for a policy of this type please complete the form below.
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