If your business interruption insurance didn’t pay out during the Covid-19 pandemic, you’re not alone. Many valid claims were wrongly denied or delayed, and there’s still time to challenge those decisions.
Please note that the deadline for new COVID-19 business interruption claims relating to Lockdown 1 has now passed.
In relation to Lockdown 2 (5 November 2020 to 2 December 2020), we are only able to consider claims where businesses were also affected during Lockdown 3 (6 January 2021 to 12 April 2021), as it is not commercially viable for us to take on Lockdown 2 claims alone.
Please get in contact with our experts if you believe your business was affected during this period.
When enquiring as to whether your claim has any prospects of succeeding, please provide a copy of your policy schedule and policy wording, together with your financial documents for the period 2018–2021. We would also ask that you confirm whether you have any evidence of a positive COVID-19 test in or around Lockdown 2 (5 November 2020 – 2 December 2020) and/or Lockdown 3 (6 January 2021 to 12 April 2021), as this may assist in assessing the merits of your claim.
At Hugh James, we’ve led the way in challenging insurers who failed to pay out valid business interruption claims. We’ve supported hundreds of clients, particularly in the hospitality and leisure sectors, whose legitimate claims were wrongly delayed or denied. From a landmark High Court victory for a Michelin-starred Welsh restaurant, to winning a pivotal Court of Appeal judgment benefitting thousands of policyholders, and a £7.5 million arbitration victory for hair and beauty salons, our track record speaks for itself.
Erich Kurtz
Our legal team supports businesses through every stage of the business interruption claims process, including:
Most companies recognise the importance of having comprehensive business insurance coverage to safeguard themselves against various risks and uncertainties. Within these insurance policies, there is typically a component that provides compensation in the event of a business interruption, regardless of the cause. While physical damage to premises from incidents like fires or storms commonly triggers such coverage, it’s worth noting that many policies extend coverage beyond instances of physical damage. They also respond to situations where interruptions occur due to other factors or perils. This broader coverage ensures that businesses can receive financial support and assistance even in scenarios where physical damage may not be the sole cause of the interruption.
Business interruption claims involve seeking compensation for financial losses resulting from significant disruptions to your business operations. These disruptions can arise from various events, and insurance policies vary in their coverage and requirements.
Business interruption insurance can provide coverage for various aspects, including:
These coverages aim to provide financial stability, minimise disruptions, and help businesses navigate challenging times by mitigating the impact of the interruption on their cash flow and overall financial health. The specific coverage and terms will vary depending on the insurance policy and the business’s individual needs and circumstances.
If a company facing financial distress holds a valid business interruption insurance policy, creditors may have the opportunity to make claims related to the impact of the coronavirus pandemic. Following a decision by the High Court, administrators or liquidators of insolvent businesses should thoroughly examine the insurance policies held by the company to determine if a claim can be pursued against the insurer for business interruption. A successful claim would result in improved dividends for the creditors of these businesses. Secured creditors should communicate with the insolvency practitioner to inquire about the existence of such a policy and assess whether it forms part of the security portfolio, potentially influencing their position.
Even if you made the voluntary decision to close your business without being explicitly instructed by the government, you may still be eligible to make a claim for business interruption. Numerous businesses chose to suspend operations due to concerns and apprehension among customers and clients about the pandemic, which can be considered a reasonable response. Additionally, certain business types may have faced challenges in implementing and adhering to social distancing measures and the two-meter rule, leading them to prioritise the safety of their staff and customers by closing down. In such cases, a valid claim for business interruption may arise.
Under a conditional fee agreement, you don’t pay any legal fees unless your claim is successful. If your case is successful, some of your legal fees may be recovered from your opponent, and the remaining fees will be deducted from your compensation at an agreed percentage. There are no hidden costs, and we’ll explain everything clearly before you proceed.
To obtain copies of your insurance policy documents, including the schedule, certificate, and booklet, it is necessary to contact your insurance company directly. As per legal obligations, insurers are required to provide these documents upon request. Reach out to your insurance provider and make a formal inquiry to obtain the necessary policy information. This will enable you to review and understand the terms, coverage, and conditions outlined in your insurance policy. Being familiar with the details of your policy will help you make informed decisions and ensure you have a clear understanding of your insurance coverage.
