Business interruption insurance is intended to cover financial losses where business operations have been interrupted, because of unexpected events causing damage to the property insured. The coronavirus pandemic is definitely an unexpected event, and it has interrupted the operations of most businesses in the drink sector, including bars, which were forced to close due to sanitation and contamination concerns.
Yet, many in the hospitality sector have experienced difficulties in claiming and accessing business interruption insurance. That’s because most standard policies are designed to cover damage caused by fire, flooding, earthquakes etc and are unlikely to be triggered in the current circumstances. Even where policy extensions provide a wider scope of coverage, insurers are contesting that these were not intended to cover losses connected with pandemics.
Are you missing out on an insurance claim?
Catrin Povey, who leads Capital Law’s insurance practice, says coffee shops and cafes that have been impacted by the coronavirus should double-check their business interruption insurance policy and make a claim before it’s too late.
Catrin Povey from Capital Law’s insurance practice
If your claim has been rejected and you think it’s unfair, seek advice from professionals who can help you review your policy
While this push back from the insurance industry is inevitable, coffee shops should not automatically accept their insurer’s denial, or assume that they are not covered. Each policy is unique, so whether a claim is possible depends on the exact terms of the policy. Where the wording is ambiguous, the policy should be interpreted in favour of the insured.
For more information from Catrin on how you should make a claim, read the full article online at Boughton's Coffee House.
For more information from Catrin on how you should make a claim, read the full article online at Boughton's Coffee House.
