Many small businesses in the UK could be in line for insurance payouts covering coronavirus-related disruption following a landmark Supreme Court decision handed down today in their favour.
Under the ruling, more policyholders will now have valid claims against insurers for disruption (Business Interruption) they've faced due to the pandemic. The Supreme Court ruled that insurers have to pay out for partial closure, full closure and mandatory closure orders that were not legally binding.
In addition, small businesses may now be able to claim more cash than expected. This is because the Supreme Court said valid claims should not be reduced because of the argument that businesses would have suffered losses anyway, even if they weren't told to close. Insurers say they'll contact affected customers to discuss their claim following the ruling.
Insurance policies would have been amended for new and renewing customers since this issue emerged, so losses from the latest lockdown measures in different parts of the UK would be clearly stated as part of the cover - or not - in new business interruption insurance policies.