In what has been described as a “historic victory” for SMEs, hundreds of thousands of small businesses could now expect to receive pay-outs on their insurance claims – which could be as high as over £1 billion.
Following the emergence of the pandemic, many of the country's firms turned to their business interruption policies for financial support, finding that those policies – in most cases – did not take into account such an unprecedented situation as we've now found ourselves.
After such a turbulent time, this ruling will come as welcome news to business owners and employers.
The Financial Conduct Authority previously said that around 370,000 policyholders could be affected by the outcome of the case.
Business interruption insurance is a key part in most commercial policies, so this now means that with the UK’s Supreme Court decision, businesses can begin the road to recovery in 2021.
Where a claim has been made, it is the insurer’s responsibility to contact you first and discuss your individual situation.
Small and medium enterprises are being assured that all valid claims will be settled as soon as possible.
Huw Evans – the Head of the Association of British Insurers – commented that the sector “welcomes the clarity the judgment will bring to complex issues.”
He also went on to state, “we will continue to work together as an industry to ensure customers have the clarity they need when it comes to what they can expect from their business insurance policies.”
For more information on the ruling, get in touch with us today.