Today the High Court dismissed appeal by Insurers on the Business Interruption test case. Even the big insurers make silly mistakes! But you the policy holder may benefit if you were one of the 40% of Business Pack policy holders that added Business Interruption cover to their Business Pack. While it was never the intent of insurers to cover policyholders for the loss of income from a pandemic, the fact that insurers never factored in a risk premium for it, and the fact there is supposed to be a material or physical loss to trigger the Business Interruption section, none of that matters according to the highest Court in the land. So what was the mistake? Simply that when insurers defined what they considered to be the definition of an infectious disease, they referred to the Quarantine Act of 1908 which since was superseded by the Biodiversity Act of 2015. Because the Quarantine Act of 1908 no longer exists, apparently you cannot draw on this for a definition of an infectious disease? Not one of the insurers picked up on this! Shows how much interest we take on the business of Governments, except what is reported in the media.
So now, Insurers will be hit with claims from last year. You could be one of them! You still have to prove your loss and each claim will be considered on a case by case basis.
Meanwhile, CPR Insurance Services will be going through all our client’s policies and seeing if a Business Interruption claim can be made by them. In the meantime contact us if you know you have this cover so we can start the claim process.
However, a word of warning. First, many companies gross profits were kept at a reasonable level already by Government compensation. You have to demonstrate a loss over that period. Further to this, it is expected to cost insurers Billions over the next year, so expect whopping big increases in your premiums this year. As if the current hard market is not bad enough.