- Business insurance claims and COVID-19: is it worth bringing a claim against my insurer?
Business insurance claims and COVID-19: is it worth bringing a claim against my insurer?
Business insurance claims and COVID-19: is it worth bringing a claim against my insurer?22nd July 2020 - Published by
Many of our clients, particularly those in the leisure and retail sectors, have approached their insurer with a business interruption claim – overwhelmingly with little success. Here, our dispute resolution team discusses the current landscape for business interruption insurance claims and what you should be doing now if you think you have a claim.
Are businesses successfully claiming on their business interruption insurance?
At the start of June, the Financial Conduct Authority (“FCA”) commenced a test case against eight insurers, seeking to resolve the uncertainty regarding the validity of business interruption claims arising from the coronavirus pandemic.
The FCA has selected a representative sample of common policy wordings that the Court will consider as part of these proceedings.
The case is currently being heard in the High Court with a decision expected in the next couple of months. It is possible that this decision will be appealed, in which case it is anticipated that the case will proceed straight to the Supreme Court for a final ruling.
How to dispute an unsuccessful business interruption insurance claim
We recommend clients seeking to recover under their business interruption policies ensure their claim is on record (there is often a time limit in this respect) and our dispute resolution team can help with this. In many instances we are advising clients to delay taking any further action pending final determination of the FCA test case.
Whilst this necessarily involves a short delay, there will (hopefully) be an authoritative resolution of the issues, thereby providing a clearer indication as to whether there is a valid claim, without any costs or costs risks falling on the insured party.
Speak to a dispute resolution lawyer about your business interruption insurance claim
If you would like an initial view on the terms of your business interruption policy and recommended approach, please contact Claire Meyers on 0161 838 7816 or email email@example.com.