In a Supreme Court judgment, handed down last week, many small firms are to be eligible to receive insurance payouts for losses incurred during lockdown.
This is a huge victory for small businesses and a lifeline for many, without which many businesses would not be able to continue to trade.
The Financial Conduct Authority (FCA), which brought the test case, said it would now be working with insurers to ensure they “move quickly” to pay claims to businesses, some of which have been struggling to stay afloat.
What should I do now?
The FCA and Insurers will now work with the Supreme Court to agree a set of declarations giving effect to the Supreme Court’s findings. The FCA has also indicated that it intends to issue a Q&A document for policyholders, giving guidance on who is now entitled to claim.
Policyholders that submitted claims earlier but that have not heard from insurers since this test case and who believe their claim could be affected should contact their broker or insurer. Similarly, any policyholders who did not submit a claim previously and who think they are now eligible should contact their broker or insurer to discuss what to do next.
If you are struggling to get your insurer to pay out for business closures or interruption arising from the pandemic, do get in touch on 0114 225 6666. We may be able to help.