What should business owners do now?
■ Start by checking your insurance policy:
Rafi, at HW Fisher, says that, whether or not you have made a prior claim, it is a good idea to check whether you have these claims in your policy. If you bought it through a broker, they may be able to help you understand what it means for you.
‘Although the ruling may well be subject to an appeal, it becomes even more necessary for businesses to consult their insurance documentation with a view to understanding whether their coronavirus-related losses will be covered. At this early stage, we understand that policies covering “notifiable diseases” will be covered under the ruling.’
■ Submit a claim if you haven’t: If you haven’t claimed, and your policy suggests you can, make a claim immediately, as there may be time limits on this.
■ Write to your insurer:
If you believe you have a relevant clause in your cover, now is the time to try to contact your insurer about it. Not all policies will pay out under this ruling, but it is certainly worth making your claim in case yours does.
■ Talk to your trade association: Many trade associations are involved in negotiations about business insurance, and may be able to help you further with what to do next.
■ Continue to gather evidence to support your claim:
For example, note loss of income from customers coming through the doors or the effects of extra local lockdown measures.
■ Complain to the Ombudsman: ‘Micro businesses’, with fewer than ten employees and turnover of less than £2million are able to use the financial ombudsman to deal with disputes with financial services companies. If your insurance claim has been turned down and you feel this is unfair and all other avenues are closed to you, this can provide you with closure and is free for you to use.
■ Ensure your business cover remains appropriate:
Duncan Sutcliffe, of Sutcliffe & Co Insurance Brokers in Worcester, says that inevitably the judgement will be read ‘with cynicism’ by those who are opposed to business insurance and cautions against dialling down on business insurance.
‘The reality is that I’ve seen 95 per cent of business insurance paid out,’ he says. ‘It’s really important that companies have appropriate cover.’