If you are thinking about making a business interruption insurance claim, it is most likely because your insurer has refused you a pay-out on the grounds of Covid-19 and the current pandemic. As all business owners know the last year has been extremely rough for companies across the UK. The lockdown has meant that customers have not been able to visit stores and in most cases, the stores themselves have been shut down to protect them. The pandemic was a disaster that could never have been predicted. That’s why the Supreme Court has decided to allow business insurance claims to go through that are about Covid-19 and the lockdown.
If you have been affected by the pandemic, and have taken out business interruption insurance, there is a chance that you could be owed compensation for your losses. You may be asking yourself whether or not you are eligible to make that type of claim. This is where Gowing Law’s expert solicitors can step in to help you. Call us today on 0800 041 8350 or by visiting our website below:
What is a business interruption insurance claim?
When you open up a business, you may have a physical shop where customers can visit you and buy your products. You may also have decided to hire employees in order to help you handle daily activities. The first thing you want to consider when you open a company is how you are going to protect it. You cannot control everything that happens inside your store. That’s why you may want to take out business interruption insurance in order to protect it from:
- Criminal activity
- Natural disasters
- Essential equipment breakdowns
- Property destruction
All of the things listed above affect how your business makes a profit. For instance, if you cannot open your business then you may not be able to sustain it by earning money from your customers. Even if you have an online store, you still have bills to pay and employees that require a wage. That’s why if you do experience any of these “interruptions” for your own business, you can use your business interruption insurance to pay for the damages and any financial obligations you may have. If you are still feeling confused, take a look at the case study gif below to understand your eligibility:
Case Study: Liam’s Bakery
Unfortunately, for those affected by Covid-19, previously, insurance firms refused to accept these types of claims. However, for general damages, if the damages are written into the clauses of your contract then you should be able to get a pay-out from your insurer. You can personalize your contract in order to protect you against more specific type of damages. After all, everyone’s career is different. If you work in an antique shop then you may need insurance for expensive products or your shop front, however if you work on a construction site then you may need to focus on insuring the equipment. Keep this in mind when you go to take out business interruption insurance.
Why couldn’t I make a business interruption insurance claim for Covid-19 damages?
Originally, when businesses began to ask insurers for help with Covid-19 related damages, the insurers’ first reaction was to decline the request. This was due to the fact that Covid-19, the pandemic and the lockdown in general were not listed in the clauses of the contract. However, this may now have changed due to the recent decision by the UK’s supreme court.
The Supreme Court has decided that insurers should accept any claims that are in relation to Covid-19 and the current pandemic. However, the claimant does still need to have specific clauses in order to be eligible for compensation. Don’t worry, if you’re feeling concerned that you may not fall into the eligible bracket, Gowing Law Solicitors can help you. Our legal team are specialists when it comes to making a business interruption insurance claims. They can keep you on the right track. That way we can ensure you full understand the type of compensation claim you are making. That way you can decide for yourself whether or not you think it is worth it.
How could I be eligible for a Business Interruption Insurance Claim?
When you make a business interruption insurance claim, you are holding your insurers responsible for helping you in your time of need. Your contract stated that you would be protected in the event of a disaster outside of your control. That’s why it’s important that they uphold their end of contract and provide you with a pay-out.
Now, the supreme court has stated that there has to be at least one of three categories that your insurance contract falls into. In other words, they need to have one of the three following clauses. These clauses are:
As you can see, there is a chance that the clauses you have in your contract are going to be interchangeable. For instance, if you have both a disease and prevention of access clause in your insurance contract, you may be able to claim for both of those “damages.” You should be protected against these types of problems. Just keep in mind that if you have a hybrid clause then you may need to point out where exactly the protection is against diseases and lack of access to your facility. Your solicitor can help you do this if you are feeling concerned that you are not eligible for a pay-out. They can do all of the hard work and ensure that you get the pay-out that you deserve.
Can I make a claim even if I received a Covid-19 grant from the government?
Yes, you can! Honestly, this is a very weird time for everyone. The UK government’s grants are there to help you immediately. This is to help you if you are struggling and are on the point of collapse. They are still in place even now to help people get a pay-out to sustain their business. One of the things the government will know is that business owners will be trying to make a Business Interruption Insurance Claim. This is in order to get a pay-out from their policies. That means you can still make a claim with the help of our law firm. That way you can get the compensation that you deserve.
Gowing Law Solicitors is ready to help you with your Business Interruption Insurance Claim
Here at Gowing Law Solicitors, we are proud that we are able to provide our clients’ support. That way our clients can get the compensation that they deserve. You need to be able to sustain your business during these difficult times. That’s why your insurer should be supporting you and paying you for your losses. Our solicitors can speak to your insurer on your behalf and can fill out any tricky paperwork. They can offer you free advice and consultations to get you started. If you are happy to move forward with your claim, you can work with our solicitors on a “no win-no fee” basis. That means you will always come out on top and will never need to pay any hidden fees.
Learn more about making a Business Interruption Insurance Claim
Don’t forget that if you want to learn more about making a business interruption insurance claim, the best place to go is Gowing Law’s blog. We update it every week with brand new content. These are about different legal claims, information about our law firm, seasonal events and the occasional competition or giveaway. If you want us to cover a certain topic, feel free to send it in to firstname.lastname@example.org. You can also search our social media for more updates or information about what we have been up to. Click on the buttons below to visit our Facebook, LinkedIn and Twitter.
We look forward to seeing you in our next blog.