As a result of COVID, thousands of companies across the UK have found their income streams have stopped and as such have turned to their insurers for business interruption pay-outs.
Following the Supreme Court ruling in January 2021, insurers must pay out on business interruption insurance policies for the first national lockdown. However, many businesses are finding that these pay-outs are being delayed with no sign of payment any time soon. Consequently, small business owners are explaining that without the pay-outs soon, their businesses could be forced to close in the near future.
More than 60 insurers offered business interruption policies, but many argued that only the most specialist policies have cover for such unprecedented restrictions caused by the coronavirus pandemic, and therefore have refused to pay out during the first lockdown.
The Association of British Insurers advises: “Business interruption claims can, in general, be complex to assess and determine quantification.” And now, many insurers are underway in this process, leading to a frustrating wait for customers described by some as a ‘stalling tactic’.