What is business interruption insurance?
Business interruption cover is designed to help your business get back to trading after an insurable event has taken place, something that has unfortunately become necessary as a result of the pandemic.
Why is it particularly relevant in 2020?
Earlier this year, thousands of businesses submitted insurance claims to their provider in order to generate income to cover overheads and account for loss of earnings as they were forced to cease trading for prolonged or intermittent periods of time. Businesses were faced with the unimaginable scenario whereby the Coronavirus was not included as part of Business Interruption insurance cover and many businesses found that their provider disputed claims, citing that they were unable to pay out due to the unprecedented nature of the pandemic.
What happened next?
The Financial Conducts Authority (FCA), as the regulator of insurance companies, brought a test case to court and on 15th September 2020 the High Court ruled in favour of the policy holder. The insurance providers have since appealed the ruling and as I write this, we don’t yet know what the outcome will be.
What does this mean going forward?
As we wait to find out the final verdict on the appeal it’s an uncertain time for all. If you are concerned about a claim against your Business Interruption policy it’s a good idea to ask a third party to review your policy wording to see what scope you have to make a claim should the ruling be upheld. This way you are prepared and can consider a contingency plan if applicable. This issue also highlights the importance of checking your policy Terms and Conditions prior to renewing a contract(s) and carrying out a detailed risk assessment. If your contract is due for renewal, be sure to check through your policy document with a fine-tooth comb, to ensure that the contract that you are signing provides the necessary cover for your business.
How we can help
We understand that current circumstances have proved to be incredibly difficult for businesses and our aim is to help manage essential spend areas, leaving you free to focus on short-term challenges as well as the long-term success of your business. Now more than ever it is important to review your insurance policies and make sure they are still fit for purpose.
Why BCR Associates?
- We carry out extensive due diligence on our supply chain partners to ensure that our clients receive the right protection for their business
- It won’t cost you a penny to get a second opinion, our insurance health check is a no cost, no-obligation service
- Rather than waiting for your supplier to get in touch at the point of renewal, we will diarise the details and contact you in good time to allow for a thorough tender process to take place
- We can help you to save money on your insurance policy - we have seen an average of 21% reduction in cost of the policies we have reviewed
- Improve internal efficiencies and free-up resources by aligning end dates – this allows you to deal with all your renewals together and provides you with great buying power when going to market
- Our preferred supply chain partners will help you to avoid incorrect, fraudulent, or underinsured policies by carrying out the necessary checks and help you to find the right provider for your business needs
To speak to one of our preferred insurance providers for a no-cost insurance health check, please get in touch on firstname.lastname@example.org or 03330 433 233.