Business Interruption Insurance Claims – The Clock is Ticking

Business Interruption (‘BI’) insurance is designed to cover financial losses that occur when a business cannot operate as usual due to an unexpected event, such as a flood, fire, or, as we’ve seen recently, a pandemic.

The Covid-19 pandemic brought unprecedented challenges to businesses across the UK. Many businesses were forced to close or severely reduce operations due to lockdowns and restrictions. As a result, countless businesses turned to their BI insurance policies to cover their losses. Unfortunately, many insurance companies have refused to honour these claims, citing various policy exclusions and case law.

Since March 2020, RLK Solicitors have been at the forefront of challenging insurance companies that wrongly denied cover for business interruptions caused by Covid-19. RLK have acted for thousands of business owners, helping them secure the insurance cover and compensation they deserve. The firm led groundbreaking test litigation, such as the Salon Gold Award case, and continue to be involved in significant cases which are further evolving the Covid-19 BI arena.

In September 2024 the Court of Appeal ruled in favour of policyholders in the much-anticipated At The Premises (‘ATP’) test case which affects Covid-19 BI insurance claims where insurance policies require a case of Covid-19 at the insured premises in order to provide cover for losses during closure / disruption. The Court of Appeal’s ruling clarifies ambiguities in the insurance policies, ruling that the majority of claimants are indeed entitled to compensation for losses sustained during the pandemic.

How do i know if i have a claim?

If your business was impacted by the pandemic, you may be eligible for a Covid-19 business interruption insurance claim. RLK Head of Insurance Litigation, Chris Guy, has outlined the 3 key criteria you need to meet:

1️⃣ You must have had a valid insurance policy in place in March 2020.

2️⃣ You need to be able to trigger that policy – this means proving there was a Covid-19 case within the vicinity of your premises.

3️⃣ You’ll need to demonstrate the financial loss your business suffered.

It’s essential to have all relevant documentation ready and to contact RLK as soon as possible to ensure that the claim is filed correctly and promptly. The RLK team have the expertise and experience to guide you through the documents needed, saving you time and moving you through the process as smoothly as possible. These claims are complex and can involve large volumes of paperwork and time. We are experts and can take care of all of this for you.

Time limits for bringing claims are strict, but businesses potentially have until March 2026 to submit a claim, depending on their specific circumstances and policy details. This really isn’t long, and businesses should seek legal advice as soon as possible to avoid any potential issues. Realistically, policyholders have a year left to bring these claims due to procedural requirements.

At RLK Solicitors, we are committed to helping businesses navigate the complex world of insurance claims and appeals. With our expertise and dedication, we can help you secure the compensation your business deserves. Don’t let the deadline pass you by—reach out to us today and take the first step towards a successful claim.

Get in touch today

Our expert team at RLK Solicitors are here to guide you through the process every step of the way. We’ll review your 2020 policy documents, advise on your eligibility, and handle the claim on your behalf so you can focus on running your business.

If you had a policy with; Accredited, Ageas, Allianz, Arch, ArgoGlobal, Aviva, AXA, Axis, Brit Syndicate 2987 at Lloyd’s of London, Canopius, Catlin Insurance, China Taiping Insurance, Contessa, Covea, HDI Global, Hiscox, Liberty Mutual, Morgan Richardson, MS Amlin, Salon Gold, Syndicate 1991 at Lloyd’s of London, Syndicate DTW1991 at Lloyd’s of London, Syndicate 435 at Lloyd’s of London, QBE, QIC, RSA, XL Catlin, Zenith or another business interruption policy back in 2020, get in touch with RLK!

You can call on 0121 450 7800 or email lucy@rlksolicitors.com. We’re ready and waiting to help you maximise your chances of a positive outcome.