Lockdown business pay-out ruling welcomed

News that insurance firms will have to pay out to small businesses hit by the coronavirus lockdown has been welcomed by the boss of Sunderland’s Business Improvement District.

Sharon Appleby was speaking after the Supreme Court ruled policies ‘will provide cover’ for business interruption caused by the Covid-19 pandemic.

In a landmark £1.2billion case over businesses’ ability to claim on insurance for coronavirus-related disruption, the UK’s highest court “substantially allowed” an appeal by the Financial Conduct Authority (FCA).

The City watchdog last year brought the test case, which could affect around 370,000 businesses, over the wording of business interruption insurance policies, which some insurers argued did not cover the Covid-19 pandemic.

Sharon Appleby, head of business operations at Sunderland Business Improvement District (BID) and board member of Sunderland Business Partnership, which together represent over 100 members of the city’s business community, said: “News that the big six insurers must pay out on damages inflicted upon small businesses due to the pandemic is a landmark victory for traders and will provide a huge lifeline to those hit hardest by the crisis.

“Throughout this crisis, we’ve worked closely with traders across the city and have witnessed first-hand the sometimes devastating impact it has had on their livelihoods and – as we look to bounce back from this crisis – it’s more important than ever that, when this lockdown is lifted, we all pull together and support our independent businesses by shopping local whenever possible.”