Business interruption insurance claims are somewhat different from other claims, for example, packaged bank account claim or payment protection insurance claim.

Business interruption claims include the whole business and are related to man-made and natural disasters, while the other two refer often to only one individual and are related to bank actions.

But, the connecting factor between the three of them is paying money, more precisely, losing money over something that is not your fault and something you didn’t choose.

When to apply for a business interruption insurance claim?

Small firms have the right to claim business interruption insurance if they want to be covered in unexpected circumstances and unpredictable scenarios in which they can lose their earnings (caused by the natural or man-made disaster).

To justify this kind of insurance claim, company personnel should be familiar with requirements and analysis.

For the claim to have a high quality, it has to give the answers to some questions, such as what are the measurements for lost earnings and loss earnings period, what is the appropriate way to value lost inventory, etc.

COVID-19 losses

Beginning in March of 2020, lockdowns and coronavirus consequences started to be visible on almost every aspect of our lives. One of the most affected areas was, and still is, our work.

Almost everyone started to work online, from schools to bigger or smaller firms. Probably the ones most affected by the whole situation are businesses that depend on people – restaurants, bars, cafes and beauty parlours.

As people were forbidden to leave their residence, these businesses had nobody to work for.

So, a lot of businesses began to lose their income and even to fall apart. For that reason, companies filed business interruption insurance claims but were often rejected in the court.

The arguments

Insurance companies state that, because the claims are based on physical loss, they cannot accept them. The reason for this is mostly connected with local authorities that restricted the use of the premises.

This argument has been taken into consideration by the court and often resulted in claims being rejected, but as time’s been passing, things started to change.

So, more often we’re seeing a scenario where coronavirus losses, even though they’re a consequence from stay-at-home policy, are categorized as physical losses.

Court support

Today, more than 10 000 small firms are about to receive payouts regarding their business interruption insurance claims. The court’s decision often goes in their favour, while insurance companies are required to cover the expenses and losses.

If your firm is currently in this kind of situation, it is good to know the fact that chances for approving your claim are increasing every day.

This is the reason you should start estimating the losses and to file a business interruption insurance claim!

If your company is facing any legal actions, make sure you get in touch with Optimal Solicitors in Manchester who can help with the whole list of things regarding your business!