If you have bought business interruption insurance, you may have done so in order to protect your firm. You need to be prepared just in case you experience damages that interrupt your business as a whole. Normally, this would be in relation to flooding, criminal damage or gross loss of income due to unexpected events. Naturally, what you are insured for depends on the policy you have signed with your insurance provider. However, due to the current pandemic, a decision has been made by the supreme courts. It has been decided that insurers should pay companies that have been financially affected by the enforced lockdown. The entire pay-out depends on the insurance that has been taken out.
If you are one of these companies that has taken out business interruption insurance, you could be owed compensation from your insurer. Unfortunately, you may be having trouble claiming your insurance pay-out due to the fact that your insurer is simply refusing to pay-out. As the Supreme Court has ruled in favour of insurers providing damage pay-outs to those with the appropriate policy, you may need legal assistance to ensure you get a pay-out that can support you through this difficult time.
Gowing Law Solicitors can help support you through this difficult time and get the compensation that you deserve. Our solicitors are experts in the field and will be able to give you personalized advice to help with your claim. Call us on 0161 464 4444 to get started or learn more from our business interruption insurance claim’s page:
What is Business Interruption Insurance?
If you have opened a business, it’s logical that you are going to want to claim as much protection for it as possible. You have raised your business from the ground upwards, therefore having a safety net in case of a disaster (such as fires, flooding and criminal activities) can give you peace of mind in the face of adversity. This is what business interruption insurance is all about.
The types of cover this insurance will provide depends on the writing in your contract. Every business is different and therefore requires different types of security. To locate what is covered in your own policy, make sure to take a look at the “basis of settlement” agreement. This will show you how much you should get as a pay-out if your business is forced to close or experienced losses outside of your control.
The amount you will receive will also depend on your turnover and the amount of you normally pay in work wages. This will then be used to figure out your overall profits. Therefore, it will provide a basic understanding of how much of an insurance pay-out you will need in order to keep your business afloat during difficult times.
What will my business interruption insurance cover?
If you have taken out business interruption insurance, you have made the right decision. You are preparing for the worst and have most likely taken out third party insurance as well just in case an accident happens in the workplace. You should read your policy carefully before you sign anything, that way you can make sure that you pick the right contract that will fully support you throughout any disasters that occur in the future. Have a look at the infographic below to get an idea of what you could claim for:
These are only a few examples of what you could receive if you decide to make an insurance claim. Make sure to analyse your contract and see what will happen if you experience a certain type of disaster and how you would be compensated for your losses. So, if you went through a burglary and lost some equipment due to thieves, the pay-out from your insurance would be to replace the equipment and any damage that was done to your property.
If you feel concerned that your policy does not concern the things that are important to you, make sure to speak to your insurer or lawyer. They can let you know about how you can include the policies that are important to you and your business.
Business Interruption Insurance: What is the update about Covid-19 pay-outs?
Right now, if you own a business you may have had to close your doors unless you are providing an essential service. This is due to the pandemic and the UK lockdown. In order to lessen the spread of Covid-19, the government has issued a nationwide lockdown to protect its citizens. Unfortunately, this may have had an extremely negative affect on your business. After all, if you cannot open up your business for customers, how are you expected to generate money? This has had a knock-on effect for most businesses and employees in the UK. If a business cannot open, there is no work for an employee. Therefore, they cannot go to work and earn money. As you can see, the lockdown has very severe consequences for businesses around the country. This has got to the point where numerous businesses have actually ended up closing down as a result.
Now, as a last resort, many businesses have been trying to sustain themselves by reaching out to their insurer to claim for their business interruption insurance. After all, their businesses have been disrupted by a disease that was completely out of their control. In order to protect employees from a “work accident”, they have been told to shut down their doors.
Right now, the supreme court and Financial Conduct Authority (FCA) have announced that insurers. The policies for most insurance claims are written in language that is extremely unspecific about the actual things they cover. The main way to see if you are eligible is to see you are eligible for compensation is to have a “non damage” clause in your contract.
An example of these clauses could include:
If you fall into one of these clauses, it is likely that you could have a claim. The FCA have ruled in favor of businesses receiving support from their insurers. Therefore you have the chance to claim a pay-out that could support your business throughout the pandemic.
Why would my business interruption insurance claim be denied?
Here at Gowing Law, we understand that you want to make a claim because you want to support your business and your employees. 2020 has been a difficult year for all of us. That’s why it’s important to get financial aid when you need it the most. It is not your fault that your business was interrupted. Now you have to bare the financial brunt of what has happened.
During the business interruption insurance test, conducted by the FCA, 21 case types proved that business owners with a policy deserved a pay-out. These policies detailed “disease” and “prevention of access” clauses would be able to claim for a pay-out to support their businesses. However, there is always the chance that your insurance firm may try to find a reason not to provide you with a pay-out. Here are some examples of some of the pitfalls that you could encounter:
- A lack of evidence does not prove you experienced a disaster in your business
- There was a limit on your own indemnity period
- There was a liability limit on how much your insurer will pay-out
One prime example of how your insurer may try to avoid paying you is through the lockdown itself. Although you were asked to shut your doors during the lockdown, when the country was in the tier system, you may have had the opportunity to re-open. If you chose to remain shut during this, then your insurer may use this as an excuse. They could say you made the choice on your own instead of being forced. This is why it is so useful to have a lawyer on your side to ensure that you get the pay-out that you deserve. They will go through your contract and make sure to help you with any specific information that you affect your claims case.
Will I immediately be awarded a pay-out if my business has suffered from the lockdown?
Unfortunately, just because you have experienced losses because of the pandemic does not mean that you are automatically entitled to a compensation pay-out. Be aware that you will need to work with a solicitor. That way you can provide appropriate evidence. This evidence will show that the problems with your business have not come about by a fault of your own. It is estimated that around 370,000 people will be able to use their notifiable diseases cover in order to help get compensation. This will hopefully help keep this business afloat.
You will not be automatically entitled to a pay-out. However, you will be able to go through your contract. This is in order to make notes on how you could be eligible to receive a pay-out. How much you receive will depend entirely on your own circumstances, as well as how much income you make through your business. Do not exaggerate how much you could be owed. Instead, go through your paperwork carefully and note down everything you think is important. You solicitor can help you understand what you could be owed. Feel free to ask them any questions you may have!
Who should I use to make a claim?
If you are thinking of claiming for your business interruption insurance, you may be wondering if it would be wise to have an experienced specialist on your side. That way you can get the pay-out that you deserve quickly and efficiently. Now, most people would recommend that you speak with your insurer or you find a broker to give you advice. However, we would recommend that you speak with a lawyer. They understand that claims can be complicated. Therefore they are ready to go through your contract with a fine-tooth comb. That way you can get a valid pay-out. It may also be useful to speak with a forensic accountant or corporate solicitor.
Gowing Law Solicitors can help with your Business Interruption Insurance Claim!
We understand that making any sort of insurance claim can be complicated. That’s why Gowing Law’s trained business interruption insurance claim solicitors are here to support you. It’s important that you get support throughout this difficult period. That way you can get a pay-out that can help you, your workers and your business. All of our lawyers are extremely experienced with insurance claims and can give you personalized advice. We can offer you no-obligation consultations to discuss your claim. If you are happy to move forward with our solicitors, we can work with you on a “no win-no fee basis”. That means you will always come out on top. You will never need to pay any hidden fees.
To get started with your claim, call us today on 0800 041 8350, email us at firstname.lastname@example.org or use our claims checker. A specialist will then be in contact to give you more information on how to move forward with your claim. Feel free to ask them any questions!
Learn more about Business Interruption Insurance on our blog!
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Gowing Law Solicitors wishes you the best of luck with your claim. We look forward to seeing you in our next blog!