{$inpagemarkup}

Search News

Results: 631-640 of 703


GCA shows the power of cards during lock-down with emotional film

27 May 2020

Award winning artists, and Greeting Card Association (GCA) members, Lanther Black, have written and produced a film for the GCA illustratingthe joy of receiving a card
Read more…

Non-essential retailers to reopen as early as 15 June, government says

26 May 2020

Prime Minister Boris Johnson announced in yesterday's conference that non-essential retailers will be able to reopen stores in England from June 15 as long as social distancing measures are... Read more…

IRC launches ‘We are open' online directory to promote small shops and business still open

14 May 2020

Open shops and small businesses are urged to add themselves to the new ‘We are open' interactive map
Read more…

FCA seeks legal judgement to clarify whether insurers should pay CV-19 claims made by firms

14 May 2020

More than a million businesses forced to close during the coronavirus lockdown may know whether insurers will have to pay previously rejected business interruption claims in a matter of... Read more…

Free ActSmart subscription to help businesses through Covid-19

14 May 2020

ActSmart are offering three months of FREE access to to a range of services and support with the ActSmart bronze subscription in return for a small charitable donation
Read more…

250 free-of-charge digital Out of Home campaigns offered to local businesses

13 May 2020

Free Out of Home campaigns will help local entrepreneurs across the UK to highlight how they've adapted to continue trading in the current circumstances.
Read more…

Working safely during COVID-19 in shops and branches

13 May 2020

A summary of the specific guidance for shops on working safely
Read more…

How consumer behaviour has changed among the British public in the face of COVID-19

10 May 2020

Recent research undertaken by the Institute of Customer Service displays evidence that the British public now place higher value on customer service that they did before COVID-19
Read more…

Government will deliver a "tapered" end to furlough scheme

5 May 2020

Chancellor Rishi Sunak has promised there will be no "cliff-edge" cut-off to the government's job retention scheme to support workers through the coronavirus pandemic.
Read more…

Coronavirus Testing available for shop workers

30 Apr 2020

The Government has extended COVID-19 testing to essential workers with symptoms and people who live with essential workers and have symptoms. This includes anyone with symptoms whose work cannot... Read more…

Back to news menu

FCA seeks legal judgement to clarify whether insurers should pay CV-19 claims made by firms

Posted on in Business News, Cycles News, Political News

More than a million businesses forced to close during the coronavirus lockdown may know whether insurers will have to pay previously rejected business interruption claims in a matter of months.

In early May the City watchdog announced it was seeking a legal judgment from the British courts to clarify whether insurers should pay claims made by firms forced to close by the lockdown.

It comes after hundreds of struggling firms banded together to launch class action lawsuits against insurers, arguing that specific clauses in their business interruption insurance policies should cover them for the income they've lost due to having to close.

However, the insurers have argued that the firms are in fact not covered - a move which has now led to the FCA's attempt to clarify what the insurance policy wordings actually mean.

The Financial Conduct Authority (FCA) is now planning to bring the first trial instance to the High Court as early as July, meaning that a judgment could be forthcoming just weeks after that. 

The FCA wrote to insurers at the start of May asking for examples of policies where they 'may consider there is no doubt about wording and decline to pay a claim, but customers may still consider there is genuine uncertainty about whether their policy provides cover'.

Over 150 different policies have been submitted, a number of which will be examined by the High Court and a judgment could then be forthcoming as early as the end of the summer.

While the FCA has clarified that the majority of business interruption customers are not covered for coronavirus, there remains a dispute over policies which contain certain 'non-damage' extensions. However, clauses for contention between firms and their insurers have arisen such as extensions that cover disruption to a business not caused by physical property damage.

Cases like this are not straightforward and there are likely to be hundreds of different policy wordings just for the area relating to business closures caused by infectious disease. According to This is Money the FCA is aiming to bring a number of test cases to the High Court in July which will include a range of policy wordings from a range of insurers for a range of business types. It is thought that judgments on enough test cases will provide very persuasive guidance on whether other insurers should pay out on similar policies.

Even if the Court rules that some policies have been triggered, one of the defences insurers will likely fall back on are so called 'trends clauses'- a key features of a traditional business interruption policy that helps to figure out how much the business is owed once they have claimed. 

Crucially however, these clauses set the damages at what the business would have earned if they hadn't closed. This is Money understands that the FCA is looking for legal clarity on this point as well as the other clauses mentioned.

This is important as it will influence the amount businesses will be entitled to receive.

It is unclear how long the court proceedings leading to a potential insurance payout could take, however, the regulator has said its court action is designed to resolve the uncertainty as 'promptly as possible'.

 

Tell us your experience

Since the 31st March members of the Independent Retailers Confederation (IRC) have been calling upon Government and insurance brokers to challenge policies where there is ambiguity.

The IRC is a well-established organisation representing over 100,000 independent retailers throughout the UK, it brings together like-minded trade associations with interests in the small and independent retail sector.

The IRC are collecting data from independent retail businesses which:

1. Have a Business Interruption clause in their insurance policy and
2. Have submitted a formal claim following the outbreak of COVOID-19 which
3. Has not been accepted by/is in dispute with the insurer

In order to highlight these issues and support the Government's request for more information, the IRC has set up an online survey, open to all independent retailers, that will help to evaluate policy ambiguity, offending insurers and the level of claims and funds under challenge.

TAKE THE SURVEY NOW

Let us know your experiences with BII by completing the online survey at indieretail.uk/business-interruption-insurance.

The IRC would also love to know if your claim has been successful, or your insurance broker/insurer have provided great service. Please let us know by emailing info@indieretail.uk.

 

 

Back to news menu

Useful links

If you have any other queries please contact us.