Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

COVID 19 and Business Interruption Insurance

11 May 2020 #Commercial #Corporate #Business Recovery & Insolvency

Many businesses, particularly in the hospitality and leisure sector hold business interruption insurance, under which they are insured for the losses and costs arising as a consequence of an event which gives rise to business interruption – claims in the past have typically involved damage to business property.

Businesses who have this type of insurance are looking to make claims under these policies because of the adverse impact of COVID-19 however a number of those with such policies have been denied a claim by their insurers. 

The Financial Times reports of a number of businesses forming class action groups against the likes of Hiscox, AXA, RSA and Zurich and the Financial Conduct Authority (“FCA”) are going to seek determination from the Court as to whether or not some policies should pay out.

Whilst the FCA declaration will not result in the determination of all claims under such policies, it is hoped that the Court will be able to provide clarity against some of the contractual uncertainties which will be welcomed by both insurers and insured alike.

We have been supporting clients in respect of questions relating to the wording of policies and are pleased that our involvement has resulted in their claims being progressed.  We are happy to share some points for you to consider when making your applications:

  • Make sure you have read your policy document and terms carefully. The devil as ever is in the detail of the policy wording, and many policies are different.  Take advice if you do not understand the terms.
  • Be prepared and gather evidence in support of the losses you have suffered. If in doubt as to what could or should be included take advice.  If you have taken out insurance through a broker engage with them and ask for their support in managing the claim.
  • If you do not feel that your claim is being dealt with appropriately, be ready to escalate the matter, be clear on how to escalate the claim and understand your rights in respect of the FCA.

For further information, or support please do not hesitate to contact us.

Clarkslegal, specialist Commercial lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Commercial matter please contact Clarkslegal's commercial team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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Stuart Mullins

Stuart Mullins

T: 0118 960 4672
M: 0777 630 5578


Commercial team
+44 (0)118 958 5321