Can Hotels Claim Business Interruption Insurance...
Posted in General News on 12th Mar 2021
Insurers and business interruptions
Does a pandemic qualify for business interruption insurance? It’s a question that hotels shouldn’t be asking themselves, but, rather, their insurance company. The Covid-19 pandemic has brought the hospitality industry to its knees. As hotels struggle to find their footing, filing a business interruption claim with their insurer could be an essential lifeline.
Business interruption insurance is not a new type of insurance policy. Before the world was turned upside down, this type of policy covered income lost in...
Insurers remain reluctant to pay business...
Posted in Dispute Resolution on 3rd Mar 2021
On 28 February 2021 the Sunday Times reported that FTSE 250 insurer Hiscox offered a struggling East London café owner $13.00 in settlement of its business interruption claim.
The London café claimed for more than 3 months’ loss, comprising of $1,600 a month in rent and $2,500 a month in stock, after it faced closure due to the Government’s response to the Covid-19 pandemic. The café had said it had been “battling bankruptcy” due to closure, like many other businesses in the UK today.
It was reported by sources close to the FTSE insurer that only...
Business Interruption Claims FAQs
Posted in General News on 2nd Feb 2021
What is Business Interruption Insurance?
Many businesses do not take out Business Interruption Insurance as they mistakenly believe that losses can be adequately covered by other insurances such as buildings and contents policies. Whilst these policies can assist in remedying any damage caused by, for instance, a fire or a flood, they do not deal with consequential losses that flow from such events.
Unfortunately, this is being highlighted now more than ever. With this unforeseen external event causing consequential losses to the vast majority of...
