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Business Interruption Insurance

Business Interruption insurance

Business interruption for policyholders

Since the inception of the pandemic, many businesses across the UK have been impacted financially, with those severely impacted, having to come to complete business closure. The Government, in its attempt to aid businesses, provided various support, such as grants and the Bounce Back loan scheme, which came to an end on 31 March 2021. Even if a business claimed such relief, it does not prevent them from making a claim on their Business Interruption Insurance (“BII”)

Further guidance for policyholders under their BII continues to shed light in this area.

The below provides an overview for policyholders in navigating their respective business policies.

Covid calculator

The FCA has published their long-awaited covid calculator, which will be used to assist policyholders to navigate their respective policy documents. The calculator will help prove the presence of Covid-19 in their concerned policy area. The three areas of guidance are:

  1. Reported cases
  2. Estimated cases
  3. Geographical distribution methodology

What does this mean? 

In summary, it still remains for policyholders to identify how the established principles and guidance from the FCA apply to their individual business circumstances.

Policyholders need to review their BII policy wording in full and establish whether they qualify. The policyholder also needs to calculate their liability and evaluate the loss they have suffered accurately.

If you remain unsure, you can always get in touch with us, where we can navigate and assist you in processing a claim.

Disclaimer:

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Connaught Law and authors accept no responsibility for loss that may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Connaught Law. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Connaught Law.