Business Interruption Insurance: the deadline on claims limitation approaches
Has your Business Interruption Claim been denied or delayed?
Exactly five years ago, the Covid-19 pandemic caused unprecedented widespread disruption, forcing businesses across the UK to shut their doors for months, impacting businesses and communities.
Many business owners rightfully turned to their insurance policies for business interruption cover, expecting financial relief. However, while some claims have been settled, a significant number remain unpaid due to ongoing disputes over coverage, aggregation and furlough related deductions. Time is running out to take action.
Legal precedents generally favour policyholders
Recent court rulings indicate that businesses may have stronger grounds to challenge insurer decisions than they previously thought. The recent Court of Appeal decision in Gatwick Investments v Liberty Mutual Insurance is demonstrative of this, but highlights how the Appellate Courts also take a balanced view on issues such as Furlough, where the Court has held that these payments made to business can be taken into account by insurers when looking at savings and calculating loss.
This means if your business interruption claim was denied or underpaid, you may still have a strong case for compensation, but only if you act before the deadline of March 2026.
Our recent experience acting on a successful business interruption insurance claim
We have advised and acted on behalf of numerous businesses who were adversely affected by lockdowns and restrictions resulting from the Covid-19 pandemic; in particular those in retail, hospitality (restaurants and hotels), leisure (gymnasiums and other wellness centres) and nightlife industries (bars, pubs and nightclubs). Please see some examples of cases we have handled:
- Advising and representing a Mayfair nightclub in relation to their £6m business interruption insurance claim for ‘notifiable disease’ occurring at the premises.
- Securing a seven-figure settlement for a UK national home improvement retailer in relation to forced closures during the first, second and third lockdowns resulting in ‘tailwind’ losses.
- Advising an international confectioner on ‘prevention of access’ and ‘non-damage denial of access’ clauses in their commercial risks insurance policy with a £1m indemnity.
- Advising a UK national restaurant chain in relation to ‘radius clauses’ resulting in forced closure of their premises and negotiating a six-figure settlement with their insurer.
- Supporting a London-based themed events company on calculation of losses in connection with aggregation limits arising from cover and negotiating a six-figure settlement in relation to multiple premises.
- Representing a UK national hotel group in insurance arbitration resulting in settlement following issue of proceedings.
- Mediation on behalf of a Second Division football club resulting in early settlement.
- Assisting insurance brokers on policy wording interpretation and application of cover in relation to their insureds.
The clock is ticking – March 2026 deadline
Time is of the essence. The six year statutory limitation period for Covid-19 related business interruption claims expires at the end of March 2026 – that is the date for being able to bring a legal claim in the English Courts. If your claim has been rejected or remains unsettled, it is imperative that you seek legal advice now to avoid missing your chance to recover what you are owed.
Take action today and speak to an expert
If you’re in doubt about policy wording, our specialist insurance lawyers are here to help you navigate your claim, review your policy and fight for the compensation you are entitled to under your policy.
Contact Insurance expert, Nick Sutton to schedule review of your policy.
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Case Law
There has been a substantial body of Case Law in this area since September 2020.
- 15th September 2020: The Divisional Court handed down the first instance judgment following the Financial Conduct Authority’s (FCA) test case, resulting in partial success for policyholders.
- 15th October 2020: The Commercial Court ruled in TKC v Allianz that Covid-19 did not cause loss of property.
- 15th January 2021: The Supreme Court found in favour of policyholders in the FCA Test Case, providing a significant ruling on causation.
- 21st February 2021: Judgment in Rockliffe Hall v Travelers found that Covid-19 was not a ‘plague’ and thus not covered under specified disease cover.
- 10th September 2021: Lord Mance’s public award in China Taiping Arbitration considered the wider application of the Supreme Court’s findings on causation.
- 25th February 2022: Judgment in Corbin & King v Axa favoured policyholders on coverage and aggregation, allowing recovery based on the Supreme Court’s findings.
- 17th October 2022: First instance judgments in Stonegate v MS Amlin & Ors, Greggs v Zurich, and Various Eateries v Allianz found that losses do not aggregate to a single occurrence.
- 26th May 2022: Aggregation decision in Pizza Express v Liberty Mutual denied per premises recovery.
- 16th June 2023: The Commercial Court ruled in favour of policyholders in the ‘At the Premises’ test case, London International Exhibition Centre Plc v RSA & Ors.
- 24th October 2023: Further test case, Gatwick Investments, argued the extension of the Supreme Court’s findings on causation.
- 1st November 2023: Stonegate settled its dispute with MS Amlin & Ors, leaving the first instance decision on furlough undisturbed.
- 28th November 2023: Various Eateries v Allianz appeal reconsidered key aggregation issues.
- 16th January 2024: Court of Appeal dismissed all appeals and cross-appeals in Various Eateries v Allianz.
- 26th January 2024: Court ruled in favour of policyholders on key issues in the Gatwick Investments test case.
- 26th January 2024: Court found against International Entertainment Holdings in its claim against Allianz.
- 31st January 2024: Sir Richard Aikens handed down public arbitration award in relation to Salon Gold policyholders v Canopius.
- 19th February 2025: Mrs Justice Cockerill granted Flat Iron and Wahaca summary judgment against QIC.
- 30th April 2024: Court of Appeal ruled no cover for Covid-19 losses under damaged-based policy wording in Bellini v Brit.
- 6th September 2025: Court of Appeal upheld ‘At the Premises’ ruling in favour of policyholders.
- 30th September 2025: Court of Appeal determined pandemic was a “catastrophe” under reinsurance contract.
- 28th October 2024: Court of Appeal determined Covid-19 is an “incident likely to endanger life” in International Entertainment Holdings Ltd v Allianz.
- 1st December 2024: Supreme Court denied insurers permission to appeal in ‘At the Premises’ test case.
- 21st January 2025: Bath Racecourse defended insurers’ appeals in relation to the Commercial Court ruling.
- 28th January 2025: Bath Racecourse appealed the insurer-favourable decision on furlough.
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Frequently asked questions about handling insurance claims and disputes
We understand that dealing with insurance claims and disputes can be complex and stressful. Our team of experienced solicitors is here to provide you with the guidance and support you need.
Below, we have compiled a list of the top 10 most frequently asked questions about handling insurance claims and disputes to help you navigate these challenges.
An insurance claim is a formal request made by a policyholder to their insurance company for compensation or coverage for a loss or damage covered under their insurance policy. The insurer reviews the claim and, if approved, provides the policyholder with the indemnity or compensation set out within the policy.
Insurance disputes can arise for various reasons, including:
- Disagreements over the interpretation of policy terms and conditions
- Denial of claims due to alleged non-disclosure or misrepresentation
- Disputes over the extent of coverage or the amount of compensation
- Delays in claim processing or payment
- Application of policy exclusions or limitations
To minimise the risk of insurance disputes, consider the following tips:
- Carefully review and understand your insurance policy terms and conditions
- Provide accurate and complete information when applying for insurance
- Maintain thorough records and documentation of your assets and any incidents that may lead to a claim
- Communicate promptly and clearly with your insurer during the claims process
If your insurance claim is denied, you should:
- Request a detailed explanation from your insurer for the denial
- Review your policy to understand the grounds for the denial
- Gather any additional evidence or documentation that may support your claim
- Consider seeking legal advice to explore your options for challenging the denial
A solicitor can provide valuable assistance in handling insurance claims and disputes by:
- Reviewing and interpreting your insurance policy
- Advising you on the merits of your claim and the best course of action
- Assisting with the preparation and submission of your claim
- Negotiating with your insurer on your behalf
- Representing you in mediation, arbitration, or court proceedings if necessary
An insurance adjuster is a professional employed by the insurance company to investigate and assess the validity of a claim. The adjuster evaluates the extent of the loss or damage, determines the amount of compensation, and ensures that the claim is processed in accordance with the policy terms.
Policy exclusions are specific conditions or circumstances that are not covered by your insurance policy. These exclusions are outlined in the policy document and can significantly impact your claim. It is important to review and understand these exclusions to know what is and isn't covered under your policy.
The duration of the insurance claims process can vary depending on the complexity of the claim and the responsiveness of both the policyholder and the insurer. Simple claims may be resolved within a matter of weeks, whereas more complex and higher value claims can take several months or longer. Prompt communication through specialist legal representatives and gathering of comprehensive and relevant documentation can help expedite the claims process.
Subrogation is the process by which an insurance company seeks reimbursement from a third party that caused the loss or damage after compensating the policyholder. This allows the insurer to recover the costs of the claim and helps keep insurance premiums lower for all policyholders.
Yes, you can dispute the amount offered by your insurer if you believe it is insufficient. To do so, you should:
- Provide additional evidence or documentation to support your claim
- Request a re-evaluation or second opinion from an independent adjuster
- Engage in negotiations with your insurer to reach a fair settlement
- Seek legal advice if necessary to explore further options for resolving the dispute
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Disclaimer
Please note that content on this page is intended to be guidance and for information and illustrative purposes only, and is not intended to be legal advice. Please speak to Nick Sutton for specific advice in relation to your particular insurance issue.
We are not insurance brokers and are not regulated by the Financial Conduct Authority. As such we are not able to advise on insurance product availability in the market, quote premiums and/or place insurance cover on your behalf.
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