Check if you’re likely to be covered Clients with business interruption (BI) insurance can now refer to a policy checker provided by the Financial Conduct Authority (FCA). Based on the outcome of the FCA test case, the online tool is a general guide aimed at assisting policyholders to see if their coronavirus-related BI losses are likely covered. You can access the policy checker here. You will need to have your insurance policy schedule on hand. According to the FCA website: “The policy checker helps you to check whether the wording in your policy is the same as, or very similar to, the … [Read more...]

Ensure you have the right amount of cover Suitable insurance forms a vital part of business continuity planning – but how can you be sure that you are buying the right amount of cover?  Below we share some top tips from How to avoid underinsurance – A guide for small and medium-sized businesses produced by the British Insurance Brokers’ Association. Top tips Use professional valuation services to help you decide on your sums insured – useful information can be provided by your broker or insurer, or via http://abi.bcis.co.uk or www.rics.org/bcis. Regular valuations will help ensure the … [Read more...]

Supreme Court hands down its judgment On 15 January, the Supreme Court handed down its judgment on the FCA’s business interruption test case. It remains the case that most SME business interruption (BI) policies are focused on property damage and only have basic cover for BI as a consequence of property damage, so are unlikely to pay out in relation to the COVID-19 pandemic and its effects. Some policies contain ‘non-damage’ related extensions of cover for business interruption, such as infectious or notifiable diseases (disease clauses) and denial of access or public authority closure or … [Read more...]