The Financial Conduct Authority has confirmed it will not extend the deadline for pandemic-related business interruption insurance claims, leaving UK businesses with a fixed and fast-approaching final window to act.
Hospitality may be dominating the headlines, but the warning signs now extend across the entire UK business landscape.
The recent closure of 21 Revolution bars and the loss of nearly 600 jobs has brought renewed attention to the financial pressure facing UK businesses. Rising operating costs, tax pressures and unresolved Covid-era losses continue to take their toll. Hospitality is simply the most visible example of a challenge affecting businesses across the economy. Government support on business rates for pubs and music venues was announced on 27 January 2026, but this will not come into effect until April 2026, after the deadline for all Covid business interruption claims has passed.
Against this backdrop, the Financial Conduct Authority has confirmed it will not extend the deadline for Covid-related business interruption insurance claims. For thousands of UK businesses across retail, hospitality, hair and beauty, tattoo and leisure, this represents a final opportunity to recover losses suffered during the pandemic.
Most business interruption claims are subject to a six-year limitation period. For the majority of Covid claims, that deadline falls in March 2026. Trade bodies representing more than 155,000 businesses formally requested a two-year extension. The FCA has refused. The deadline is fixed.
The scale of the issue is substantial. Fewer than 50,000 Covid business interruption claims have been accepted by insurers, while legal analysis suggests that up to 370,000 policies could still qualify for compensation. Based on our expertise we estimate this is closer to 500,000.
Many businesses were incorrectly told they had no cover. Others saw claims rejected or underpaid based on policy interpretations that have since been challenged through the courts.
A short initial review can confirm whether a policy may still qualify before the March 2026 cut-off.
Businesses insured through Salon Gold, Morgan Richardson, Beazley or Tattoo Insure are being encouraged to seek advice now, as a high volume of recent enquiries has involved policies placed with these providers.
Where claims are not made or protected in time, businesses may lose the right to recover losses altogether, regardless of future legal developments.
This is not a hospitality-only issue. Covid disruption affected turnover, staffing, access to premises and contractual performance across retail, hospitality, hair and beauty, tattoo and leisure businesses nationwide. Many absorbed the losses and moved on. With margins now under sustained pressure, recovering historic insurance entitlements could prove critical to long-term stability.
We have been successful for thousands of policyholders across the UK, with some receiving payouts in as little as two weeks. Businesses paid insurance premiums to protect themselves against disruption. Recovering that protection now could make a meaningful difference.
If you paid for business interruption insurance and your business was affected during the pandemic, now is the time to act. Claims must be pursued before March 2026, or the opportunity may be lost entirely.
You need to have your claim started with us by Friday 13 February.
Chris has a strong background in insurance-based Civil Litigation and is Head of the Insurance Litigation department. Chris brings a sharp commercial mindset to his work, having spent time in the legal team of a major insurer and working in-house with FTSE 250 companies and international insurers. His expertise in Civil Litigation has earned him recognition in the Legal 500, and he is known for his meticulous attention to detail, commitment, and approachable client service.
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