To cover or not to cover, that is the question?

In an unprecedented year, businesses who believed they have taken the sensible option of insuring against potential losses, have been left high and dry. Having policies that were supposed to cover business losses as a result of matters out of their control, should have comforted business owners but instead has caused only further headaches.

Insurers, undoubtedly facing millions of pounds’ worth of claims, have tried to argue that their policy wording does not cover the present pandemic. Many different arguments have been raised on individually worded polices and claims rejected. For many, this has been the last straw and business have gone to the wall.

However, a number of businesses have formed an action group to challenge some of the Country's biggest insurers and we await a final ruling from the Supreme Court who sat at the beginning of December. Even if the court is in favour of a more expansive wording on which circumstances will lead to a pay out, it will fall to the individual policy wording as to whether any money is received. There are hundreds of thousands of claims waiting the pending judgment.

Regardless of the outcome, you can be sure that Insurers will have been quickly rewriting new policies and therefore it is essential that any new policies taken out, whether it be on a renewal with an existing Insurer or a brand new policy, are checked very carefully. If they do not cover what you think they should, you may well need to shop around. Market forces will dictate how generous a policy can be worded but just do not assume everything will be covered.

Due diligence is the key.

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