20 Oct More Businesses are Receiving their Business Interruption Insurance Payouts

Latest data from the Financial Conduct Authority (FCA) on October 5, has revealed that around 68% of UK business insurance policy holders who have made a claim in respect of COVID-19 business interruption, have received an interim payment or more.

A total of more than £1.10 billion has now been paid out for COVID-19 business interruption claims, which is 6.8% up on the September figures.

Business interruption claim settlements

The figures revealed that of the 24,463 accepted claims, the aggregate value of the final settlement payments is £766,598,035.

Of the 4,403 as-yet unsettled claims where initial or interim payments have been made, the aggregate value is £329,368,933.

The FCA figures come directly from the insurers themselves, including large providers such as Allianz, AXA, Covea, Hiscox, MS Amlin, QBE UK, and Royal & Sun Alliance to name just a few.

The background

The road to businesses receiving payouts following the global health pandemic has been a long one. In May 2020, the FCA brought forward a business interruption insurance test case to seek clarity on the issue of whether insurers were obligated to pay out as a result of COVID-19.

In September 2020, the High Court ruled in favour of policyholders on the majority of the key issues; however, the FCA and a group of insurance and reinsurance companies were given permission to appeal.

In January, the High Court upheld the first instance ruling and at that time, analysts estimated around 370,000 businesses could potentially make a claim, with a possible value of between £3.7 billion and £7.4 billion.

In August 2021, the FCA published a list of business interruption policies that were capable of responding to the COVID-19 Pandemic, although inclusion on the list does not mean all claims will be valid.

The list contains business insurance products designed for many trade sectors including, notably, shops, small businesses, pubs, restaurants and takeaways, hotels and guest houses, offices, surgeries, sports and social clubs, care homes and many more specific policy types.

Business insurance with Tredstone

Making sure you’ve got the right business insurance cover in place can be made simple by contacting Tredstone Risks today.

Call 0800 2315 162 or click on the Get a Quote button now.