A Supreme Court ruling has meant that insurers must pay out on any disputed coronavirus business interruption claim to businesses.
The news is a huge boost for businesses who were expecting their policies to cover the disruption that coronavirus has caused.
The Supreme Court Ruling
Many businesses found themselves in a tough place during the first lockdown, as insurers were turning them down for claims.
The insurers were arguing that their policies didn’t cover business disruption on a wide scale like this.
Given the fact that many businesses were being plunged into financial ruin, the legal pushback was rightly fast-tracked up to the highest court in England & Wales.
The Supreme Court took a look at the evidence and decided that the insurance did cover business interruption in the case of a national pandemic like coronavirus.
“Any other outcome seemed to be contrary to the intent of the policies” said one of the judges.
A Massive Boost To Businesses
The group representing the policy holders has described the ruling as an ‘extraordinary outcome’.
Many businesses felt backed into a corner, and were desperate to get support when they really needed it.
That’s why this is massive boost to businesses, and the news might lead to more businesses making claims of their own against insurance policies.
The insurance industry is expected to pay out over £1.8bn in claims related to COVID-19.
Have You Been Impacted?
If your business had been impacted by coronavirus during the first lockdown, then this news might be helpful to you.
For customers who had made a claim during the first lockdown – we’re told that you should be contacted by your insurer.
The insurer will revisit your claim, and explain what the Supreme Court ruling means for payout.
However, if you had an insurance policy to support you through the first lockdown – it is well worth revisiting the policy and proactively opening communications with your insurer.
This is so you can get the support you need as quickly as possible.
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