Business Interruption Insurance - Are your insurers refusing to pay?

Business Interruption Insurance has been a hot topic since the Covid-19 pandemic began. Many businesses across the UK were initially hopeful that their insurance would pay out to help them with the losses that they incurred because of the Government imposed lockdowns and quarantine measures. However, there appeared to be resistance from some insurers.

The Financial Conduct Authority (FCA) brought a test case against 8 insurers involving 21 different policy types which led to the High Court ruling in September 2020, and later, on appeal, the Supreme Court decision in January 2021, which both broadly found against insurers. Estimates were that some 370,000 policyholders around the UK were going to be affected by the outcome of the test case. Please see our earlier article here.

In mid-June 2021, the FCA published guidance for insurers and intermediaries to apply when handling claims for business interruption policies. This came into force with immediate effect and provided clarity to the parties on such policies.

Unfortunately, but perhaps unsurprisingly, the anecdotal evidence is that not all businesses are finding this as straightforward as they had hoped.  Some are having what they believe to be valid claims declined.  Others are receiving a pay out but at a lower level than they were expecting and for reasons which are unclear or which they do not agree with.

If this applies to you, we would like to help. Our specialist commercial dispute resolution team at Prettys is already advising clients in this position and would be happy to discuss your policy and claim to see whether you are being treated properly, and if not, to help you. 

Contact Graham Mead, a Partner in our Commercial Dispute Resolution Team on 01473 232121 or

Graham Mead