Business interruption insurance (BI) is also known as time loss, consequential loss and loss of profits insurance. It provides cover for the financial losses due to an interruption to a business caused by material damage to property or some other incident.

Business Interruption Insurance is taken out to insure against risks that could impact a business such as fire or flooding and to cover any financial losses should such a risk occur. Some insurance policies also cover losses caused by “notifiable diseases”, which the Courts have decided includes COVID-19.

If your insurer has refused to pay out we can look into this on your behalf to find out if this decision was unfair. Depending on the policy we may be able to assist in obtaining a pay out on your behalf if you have lost out financially.

We can assist businesses that have been affected by Co-vid 19 even if you have already tried to make a claim that has been rejected by the insurers or they have put forward a settlement offer for less than you think the claim may be worth.

Every policy is worded differently and every business is different and this may impact on the interpretation of the policy and whether you have cover. You must tell your insurer about your claim in a particular way and within a particular timeframe depending on your policy. If you don’t, you may not be able to recover your losses.  You should calculate how much you think your business has lost due to the interruption and collect evidence. Normally business interruption insurance will cover loss of gross profit or rent, additional expenses, and sometimes the cost of preparing your claim however your policy may have a maximum sum that you can claim.

Despite the Financial Conduct Authority providing guidance to Insurers, our experience shows us that this may not always lead to a successful claim, or a fair payment in settlement of your claim.

We can help even if you cannot find any paperwork and will pursue a case against the relevant insurer and/ or escalate the case to the Financial Ombudsman Service which handles complaints between consumers and businesses providing financial services, such as insurers. Whilst businesses can make these claims themselves, the process can be complex and time consuming at a time when a business’s main focus is to trade and recover any lost revenue.

To check if you have a possible claim you should carry out the following to confirm you have the relevant cover, abide by the terms of the policy, have an idea of the value of your claim and make sure that all of your losses are recoverable.