- Business interruption insurance: are you covered?
Business interruption insurance: are you covered?
Business interruption insurance: are you covered?8th April 2020 - Published by
As the impact of the coronavirus pandemic puts businesses under increasing financial pressure and, in certain circumstances, has shut down trade completely, many companies will be looking to their insurance policies to see whether or not they can provide any assistance in these very uncertain times.
Business interruption insurance, which is often sold by insurance companies as part of a combined policy, traditionally covers lost revenue from physical damage to premises belonging to an insured. Most people would presume that this will cover most eventualities including the downturn resulting from the effects of the COVID-19 pandemic.
Like all insurance products, business interruption policies often contain a long list of exclusions which often include infectious diseases. However, some businesses took up the option of paying for extended cover to protect against notifiable diseases. Whether or not a policy will cover the losses arising from COVID-19 will depend entirely on the specific wording of each policy. These types of policies come in many different forms.
Ultimately, there can be little doubt that insurance companies will be looking to take a robust stance. The types of arguments which may be raised by insurance companies in response to insurance claims are as follows:-
1. The policy contains a prescribed list of infectious diseases and COVID-19 is not named;
2. The policy provides cover in the event of notifiable disease within a certain radius of the premises and COVID-19 is a global pandemic rather than a local epidemic;
3. Any losses suffered before COVID-19 was declared notifiable on 5 March 2020 are not covered; and
4. The policy requires there to be a direct link between the damage to the premises and the revenue losses.
It is important to note that even minor differences in the wording of a policy can have a huge impact on whether the financial loss caused by COVID-19 falls within the policy’s remit. This is an unprecedented situation and an insured may have a claim based upon wording that was intended for wholly different purposes. For example, cover for denial of access to the insurer’s premises.
We are providing businesses who have had their claim rejected by their insurer with a free consultation to assess whether they have grounds to dispute the decision.
Our team of experts will evaluate your insurance documentation and provide advice as to the likelihood of success in disputing the insurer’s decision.
Following this, we will provide commercial advice as to the cost-benefits of pursuing a claim in relation to its value. Contact our COVID-19 Insurance Claims Advice Team today for:
- A free initial assessment of the particulars of your claim by an expert – we will provide you with honest advice as to the merits of your claim and there is no obligation to proceed to the next stage.
- Tailored, expert advice as to your potential next steps.
- We will be transparent and upfront about any likely costs at this stage. For example, initiating negotiations with your insurer is likely to cost £750 + VAT.
- Insurance claims resulting from the impact of COVID-19
To have your insurance claim reviewed free of charge, please contact Rebecca Ingram on 0161 838 8161 or email firstname.lastname@example.org.