BiKBBI CEO Damian Walters urged tradespeople and retailers to check their insurance policies, after The Supreme Court ruled on business disruption policies.
The court case centered around whether firms who held business interruption policies were entitled to compensation after having to close during the first national lockdown.
These policies usually only cover disruption to commercial activity caused by property damage, but they can also included losses from ‘infectious’ or notifiable diseases.
Six insurers who had sold business interruption insurance products – Arch, Argenta, Hiscox, MS Amlin, QBE and RSA – unsuccessfully argued that their policies did not cover Covid because it was a global pandemic rather than a local event.
The majority of businesses who will now receive payouts will be customers of these six insurers, but firms who hold similar policies with other insurance companies now stand a far greater chance of success.
Walters commented on today’s ruling by saying: “This is great news for the SME. If an insurance policy includes protection against business disruption caused by disease, then why shouldn’t policy holders be entitled to claim”.
Damian added: “My advice to all tradespeople would be for you to check policies. We will be writing to all members next week who we believe may be entitled to claim following todays ruling”
Exciting times at BiKBBI and much needed change now in full swing.
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