Business interruption insurance – do you have a claim?

Policyholders of Business Interruption Insurance (‘BII’) are approaching our legal experts seeking advice and guidance following their insurers’ refusal to accept liability for their claims arising as a result of the Coronavirus pandemic.
You might be forgiven for thinking that BII offers a lifeline to businesses whose income streams have been hit hard as a result of the ongoing crisis, but this isn’t necessarily the case. 

Despite the fact that BII is intended to cover loss of income arising from an unexpected event, which this crisis most certainly is, many insurers have indicated that they will resist paying out on these claims.
There are a number of reasons why insurers are taking this position. From a legal perspective, they argue, as they must in order to succeed ultimately in court, that the wording in the policies simply does not cover the current pandemic.
This may or may not be the case but, there is no doubt that insurers are also concerned about setting a precedent in these types of claims, which could cost them a vast amount of money.   

Due to the importance of this issue to so many businesses as well, of course, to the insurance industry, the Financial Conduct Authority is seeking urgent legal clarity on BII in the context of this pandemic in order to try to bring some clarity to the situation. The regulator is intending to bring a “test case” to the High Court as soon as possible, and indeed this could happen as early as July 2020.  The outcome of this test case, which will consider the policies of a number of insurers, will go some way to determining whether claims will succeed, but it may well not see an end to challenges and litigation on the issue both from businesses and insurers.

How our  lawyers can help with your BII Claim?

DMH Stallard have significant experience in dealing with insurance claims and working with insurers and those seeking to challenge insurers.  We can advise you every step of the way including:
  • Assessing your policy and advising on the likely interpretation of the relevant wording, taking in to account the potential impact of the proposed test case being lined up by the FCA
  • Making a formal approach to the insurer to set out the basis of your claim under your BII, as required by the courts
  • Bringing a court claim on your behalf against the insurer, if appropriate, with a view to making a financial recovery on your behalf, whether through settlement or court imposed judgment
If you would like more advice please contact us on 03333 231 580

If you would like an initial discussion please complete the form and one of our legal experts will call you.


How our dispute resolution and litigation lawyers work

Our litigation and dispute resolution specialists are results driven.

They have an unrelenting focus on achieving the best possible commercial outcomes for our clients at the earliest opportunity and on every occasion

They will help you to choose the most appropriate methods to resolve your dispute.

It is often the case that claims should be, and are, settled at an early stage, whether through negotiation, mediation or another form of dispute resolution. We will litigate claims through the courts but only where that route offers our clients the best likely return.

  • Brighton Office

    1 Jubilee Street


    East Sussex

    BN1 1GE

  • Gatwick Office

    Griffin House

    135 High Street


    West Sussex

    RH10 1DQ

  • Guildford Office

    Wonersh House

    The Guildway

    Old Portsmouth Road



    GU3 1LR

  • Horsham Office

    Ridgeland House

    15 Carfax


    West Sussex

    RH12 1DY

  • London Office

    6 New Street Square

    New Fetter Lane


    EC4A 3BF

  • Get in touch