Date15 Jan 2021
In response to today's court ruling in favour of small firms receiving payments from business interruption insurance policies, Martin Chapman, Forensic Accounting Partner at Azets, the UK's largest regional accountancy and business advisors to SMEs, said:
"This is great news for businesses. This judgement could offer lifelines to many businesses who can now make valid claims under their policies. Even when the initial judgement was handed in September 2020 insurers still held firm and made no payments until today's results.
"Unfortunately, for all the winners in this situation, the losers will be those businesses who still do not have the required policy wording for valid claims. Business owners must discuss their policy with insurers, brokers and professionals who can offer advice and see if they can make a claim even if they have been told “no” in the past.
"The future of the industry isn't easy to predict, but there has undoubtedly been a loss in confidence in insurers by businesses. Insurers who bear the brunt of these payments will undoubtedly look at increasing premiums to recover those payouts. Businesses may now move insurers if they have been let down by the service they received. Policy wording will no doubt be changed which is already being seen with the outbreak and impact of Covid-19 being listed as a non-claimable event on newer policies. Without a doubt, COVID-19 has had and will continue to have an impact on the insurance industry for a long time."