BUSINESS INTERRUPTION INSURANCE

Business Interruption Insurance (BII) is a type of insurance that is designed to protect businesses against the financial loss suffered as the result of a property claim. It typically covers short term financial loss arising from interruption to business operations as a result of damage to the business premises or equipment.  The cover is often extended to include prevention of access to the premises, and sometimes includes loss caused by interruption to supply of goods and services.

The Covid-19 pandemic caused disruption to a significant number of businesses in the UK. The strict government measures resulted in many businesses having to significantly reduce their operations or, in some cases, shut down completely. As a result, business owners suffered loss of earning and other damage.

If your business purchased BII, either as a part of or as an extension to your usual commercial policy, you might be entitled to compensation from your insurance provider. For some businesses, BII can mean the difference between ensuring a long-term future and going under. However, many of those who tried to make a claim were denied compensation on the basis that particular losses were not covered under their policy.

 In a recent case brought by the Financial Conduct Authority against eight insurers, the High Court gave useful guidance on the proper operation of cover under certain non-damage business interruption insurance extensions. The Court found broadly in favour of the insured on the majority of the key issues, in particular in respect of coverage triggers under most types of clauses.

Charles Lyndon’s financial litigation lawyers can assess whether you have a claim and will be able to advise you on how to proceed, whether that is through a complaint to your insurance advisor or provider, the Financial Ombudsman Service or the Financial Services Compensation Scheme, or, if necessary, we can bring a claim in court. We can evaluate whether you have lost out financially due to the insurance provider refusing to pay and help with your claim for compensation.

If you have business interruption insurance and your insurer has not paid out or if you would like to discuss us helping you to make a claim, please contact us for a free, no obligation chat.  If we believe we can help you, we can do so on a ‘no win no fee’ basis.

We can evaluate whether you have lost out financially due to the insurance provider refusing to pay and help with your claim for compensation.