What is business interruption insurance?

Business premises closed. Business Interruption Insurance

The Covid 19 pandemic had a significant impact on businesses across the world, with many being forced to close their doors, unable to trade. As the Covid-19 pandemic aftermath continues to affect businesses across the UK, it is important for business owners to understand their rights and options when it comes to business interruption insurance.

Business interruption insurance is designed to cover financial losses in the event of unexpected disruptions, such as natural disasters or fires. However, many insurance companies have refused to pay out for losses caused by the pandemic, claiming that it is not covered under their policies.

This has left many business owners struggling to survive without the financial support they were counting on. If you are one of them, RLK can help. Our experienced team can review your insurance policy and advise you on your options for making a claim.

“Clients come to us in a range of situations. Many are denied policy cover by their insurance company. Some are only offered a fraction of what they deserve. Many clients come to us as soon as there has been a critical incident to their business to better understand their position. Recently we were immediately instructed by a client following a large fire that destroyed their business premises. This is exactly the right thing to do to protect your position from the onset as it is often very difficult to retract from admissions or evidence provided to your insurers or the authorities which is not representative of the true position once a business has sought legal advice.” Chris Guy, Head of Insurance Litigation, RLK

Business interruption insurance explained

Business interruption insurance covers you for loss of income during periods when you cannot carry out business as usual due to an unexpected event. Business interruption insurance aims to put your business back in the same trading position it was in before the event occurred.

If you have experienced any of the below examples*, you may be entitled to damages under your insurance policy, and we would advise that you get in touch;

  • Damage caused to your premises or equipment by fire, storm or flooding.
  • The breakdown of essential equipment.
  • Denial of access to the premises.
  • Damage occurring at the premises of a supplier or customer.
  • Identification of a notifiable human disease at the premises including Covid-19 claims.

*(please note this is a non-exhaustive list)

Why choose RLK Solicitors:

RLK Solicitors are the UK’s leading firm in Business Interruption insurance claims, having pioneered this complex and evolving area of law prior to the pandemic lockdowns. We carry great expertise around Covid-19 claims and we also specialise in insurance litigation including standard Business Interruption Insurance claims too. Our team are insurance specialists with in depth knowledge experience spanning decades.

RLK solicitors have recently been successful in an arbitration against a well-known insurer in the Salon Gold Arbitration, whom were denying liability to pay out salons due to the forced closures of the premises as a result of the Covid-19 pandemic. In this landmark case, we acted for over 350 businesses across the UK and Isle of Man, as the insurer was ordered to payout Covid-19 pandemic losses. This is just one element of the vast scope of work we carry out to assist businesses/individuals with insurance claims and an example of our success.

How can we add value to your claim:

There are many ways we can add value to your claim, even if your insurance company is confirming cover.

  • If the insurance company is denying liability for your claim, we will undertake a detailed review of your policy documents to identify whether you have a case. If the insurance company is not denying your claim, we can still conduct a review of your policy documents to ensure the insurer is taking into account all relevant clauses in your policy.
  • We will liaise with the insurance company on your behalf, to ensure you are not handing over any documents which are unnecessarily being requested or they are not causing an unnecessary delay with your claim valuation.
  • Once a valuation is received, we can review the calculations made and fight for more damages for you using our expertise and knowledge in the industry.
  • You may be entitled to extra damages – our expertise will ensure this is challenged upfront to secure the maximum claim for you and your business.

Next steps

If you need assistance in your business insurance claim, please do not hesitate to get in touch. We have an expert and knowledgeable team who will be happy to assist you and who will fight to secure you the maximum damages your business deserves. Should you have any questions whether you are eligible to make a claim or require any assistance with your ongoing insurance case, please contact enquiries@rlksolicitors.com or alternatively, call 0121 450 7800.

This article was written by Apprentice Paralegal Mia Jones.