HOW LONG DOES BUSINESS INTERRUPTION INSURANCE CLAIMS TAKE?

Business interruption claims have been on the rise since the Covid-19 pandemic outbreak.  This is all you need to know about making a claim. 

By Michael Cotter

Whether you’re seeking to make a claim under Business Interruption Insurance for losses from coronavirus, or are looking to challenge an existing decision, you will want a resolution quickly. After a year of lockdowns and uncertainty, any wait for decisions and pay-outs will be tough. The good news is that the issues that delayed and denied claims throughout 2020 have now been largely resolved through the UK courts. 

And now, the most important question for many business owners is how long it will take for insurers to pay.

However, it is difficult to give any precise guidance on how long it will take an insurer to make a decision related to Business Interruption Insurance claims. In our experience, once claims are submitted it takes circa 90 days to reach a decision. 

The FCA (Financial Conduct Authority) is working to ensure that insurers “rapidly conclude their claims processes on claims that the Supreme Court has said should be paid, providing interim payments wherever possible” and has advised business owners to seek advice as soon as possible. 

The best way to ensure a claim is resolved as quickly as possible is to make it as strong as possible from the outset. A clear, detailed, strongly-argued claim will progress much faster than those that leave any room for doubt and it is not too late to make a new claim under your Business Interruption Insurance policy. 

However, it is advisable to act swiftly to submit a new claim and to ensure that any claim is presented in the best possible manner.

For more information financial services dispute, contact:

michael.cotter@ceclegal.co.uk