Business interruption cover for loss of profits and increased costs of working can be part of a broad variety of commercial policies.
Policyholders are facing a combination of depleted revenues and increased costs as a result of the government’s containment measures. As the COVID-19 outbreak gathers momentum, they could face severe disruption to their supply chain a mass absence of employees and customers.
A standard business interruption policy is unlikely to trigger coverage for the effects of COVID-19, however there are several extensions to such a policy that might.
It may be that a policy contains restricted access cover or cover for ‘non-damage’ business interruption, such as interruption by a notifiable or infectious disease.
Our team will conduct a review of your policy and advise on the merits of recovery. We will assist you at every step in preparing your case and negotiating with insurers to ensure that you recover the maximum amount to minimise the impact of these unprecedented times.
Key Person Insurance
Also called ‘key man insurance’, these policies are designed to shield policyholders from the financial impacts of losing their key people due to death or incapacity by compensating the business with a fixed sum.
We can advise on the merits of bringing a claim if the pandemic (or indeed, any other event) has led to the mass incapacity of individuals whose skills, knowledge and experience are important to the success of the business.
Our team also has an excellent track record in professional negligence claims, including where an insurance broker fails to give appropriate advice to a policyholder.
Your broker may have incorrectly advised you not to take out a certain policy which would have covered a proportion of the losses that you suffered.
We will assess the correspondence between the parties and the circumstances surrounding the negligent act and, if appropriate, mitigate your loss by recovering an amount equal to the loss suffered as a result of the broker’s negligence.
Applications to the Financial Ombudsman
Policyholders who meet the definition of consumers or small businesses can make a complaint to the Financial Ombudsman, who have statutory powers to settle disputes between insurers and policyholders for losses suffered up to a certain amount (currently £350,000).
We will assess whether you meet the application criteria and provide initial advice regarding the likelihood of the Ombudsman’s decision. If necessary, we will structure your complaint to ensure that all salient points are covered in order to maximise your chances of recovery.