Business Interruption Insurance: Were You Advised Properly?

There has been considerable angst expressed overnight by those in the hospitality sector after the government advised people not to visit pubs, clubs and restaurants but not ordering those businesses to close. Owners said that this would prevent them from claiming on insurance policies.

In what will not come as a surprise to anyone who has ever made a claim on an insurance policy, insurers are already seeking to weasel out of being required to make payments. Just as Popes are Catholic and bears defecate in the woods (if, as a result of panic buying, they can find loo roll), so it is that insurers try not to pay out despite merrily pocketing premiums for years.

The BBC reported that the Association of British Insurers said: “Standard business interruption cover – the type the majority of businesses purchase – does not include forced closure by authorities as it is intended to respond to physical damage at the property which results in the business being unable to continue to trade.

“A small minority of typically larger firms might have purchased an extension to their cover for closure due to any infectious disease. In this instance, an enforced closure could help them make the claim.

“But this will depend on the precise nature of the cover they have purchased, so they should check with their insurer or broker to see if they are covered.”

If you believe you ought to be protected by business interruption insurance, but your insurers refuse to pay out (or your broker negligently failed to advise you of the need to purchase an extension of cover), please contact  Griffin Law by email at or call 01732 525923.



Image Credit: Artaxerxes