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Insurers pay tens of thousands to small businesses for Covid lockdown losses

15 Jan 2021

Following today's Supreme Court ruling tens of thousands of small businesses will receive insurance payouts covering losses from the first national lockdown.

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Single use carrier bag set to increase in Scotland from 5p to 10p from 1st April 2021

13 Jan 2021

The increase in the SUCB charge will not result in a cost increase for retailers.
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Freedom To Pay campaign promotes the use of cash in stores

13 Jan 2021

Cash is a necessity millions couldn't live without, will you sign the voluntary cash pledge?
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Maybe*'s 10 step plan for social media success in 2021

11 Jan 2021

Maybe* share how they will achieve their 2021 to improve insights using opportunities spotted in their own data

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New digital product discovery platform Buyerdock searches for indie retail volunteers for free trials

6 Jan 2021

Buyerdock, the new online platform to help buyers find exciting new shelf ready products, have now opened the platform to independent retailers.
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How to employ Low Skills workers in post Brexit UK

4 Jan 2021

ActSmart partner Tom Redfern, Founder and Senior Partner at Redfern Legal LLP, investigates ways in which it is still possible to employ a low skills worker who is not a UK national

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Maybe* releases social media data from 2020 that small businesses can use to plan for 2021

31 Dec 2020

Examples of the most succesful social media strategies from 2020 and look into what this data show us about consumer trends for 2021

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How to keep your business running in tougher restrictions

30 Dec 2020

Keeping your business running throughout tougher restrictions will mean adapting current processes, as well as utlising new opportunities.
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Welsh Finance Minister Sets out 2021-22 Budget

29 Dec 2020

Welsh Government Finance Minister Rebecca Evans MS has unveiled its ‘Protect, Build, Change' draft Budget for 2021/22
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Indie Retail Christmas Opening Hours

22 Dec 2020

The Indie Retail office will be open as usual (9am-5:15pm) for the majority of the Christmas perio, with some exceptions.
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Insurers pay tens of thousands to small businesses for Covid lockdown losses

Posted on in Business News, Cycles News

Following today's Supreme Court ruling tens of thousands of small businesses will receive insurance payouts covering losses from the first national lockdown.

After the announcement of the first lockdown in March, the Treasury Select Committee, led by Mel Stride MP, challenged the Association of British Insurers (ABI) regarding the support offered to business via their members, with specific regard to business interruption insurance.

Many small businesses made claims through business interruption insurance policies for loss of earnings when they had to close. But many insurers refused to pay, arguing only the most specialist policies had cover for such unprecedented restrictions.

The Committee sought to clarify where business insurance support had ceased to be offered or policy terms had changed and exclusions added, since the pandemic began.

Government appeared to expect that business insurance policies would provide funding support for independent retailers through the provision of cover for coronavirus related costs after it added COVID-19 to its list of notifiable diseases.

 

A united stance amongst Trade Organisations

On March 31st the Independent Retailers Confederation (IRC), led by the ACT and ActSmart, called upon Government and insurance brokers to challenge policies where there is ambiguity.

The IRC is a well-established organisation representing over 100,000 independent retailers throughout the UK, it brings together like-minded trade associations with interests in the small and independent retail sector.

Information was collated through the trade organisations that make up the IRC from retailers that had made a claim for business interruption which was denied by the insurer. This information was collated and put towards lobbying the government on this issue.

The case has been ongoing for many months, with the Supreme Court today ruling in favour of small firms receiving payments from business interruption insurance policies.

For some businesses it could provide a lifeline, allowing them to trade beyond the coronavirus crisis. The ruling could cost the insurance sector hundreds of millions of pounds.

 

Insurers to pay out on many, but not all, policies

It is important to note that while this is certainly a victory for many small businesses, this does not now mean that all insurers are required to start paying out. The insurance payout is entirely dependent on the clarity of the policy wording. The case put forward to the Supreme Court was against a small number of insurers and specific policy wordings.

Whilst the case evaluated was a ‘test' case, there is now hope that other insurers with the same/similar wordings will feel that they should also follow the ruling- for both good conscience and to avoid individual litigation.

Long-standing ACT partner and insurance specialists Butterworth Spengler have made the decision to re-visit any claims made by clients where this ruling may now have an impact. They would also like to highlight that their claims team is available to consider any questions from clients.

 

 

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