Business Interruption claims

If your business had to close or reduce operations due to the impact of coronavirus and the UK Government imposed lockdowns then you may be entitled to make a claim under your Business Interruption insurance policy for the losses your business incurred. You may have a specific policy for this, but it is more likely that Business Interruption cover will have been included within your general commercial insurance policy.

The Financial Conduct Authority brought a test case in the High Court against a number of insurers to resolve some uncertainties regarding contractual wording and other coverage issues. In January 2021 the Supreme Court ruled generally in favour of policyholders, although there were some limitations, for example, not all sample wordings were tested from the six insurers involved in the proceedings (approximately 10% of the insurers in this market) and the case dealt with only specific clauses and claim scenarios. Insurers are continuing to challenge claims on policies where policy wording differs to those in the test case or where there are other legal distinctions or differences.

If your business has a potential claim under a Business Interruption insurance policy that the insurer is not progressing, WHD Broking can assist. We work with a number of specialist lawyers with many years’ experience of handling disputed insurance claims. There is a range of options available, including, where appropriate, “no-win-no-fee” type arrangements.