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 33 out of 450 claimants had received an offer in consideration of their business interruption claim by 4pm on Friday. Following the Supreme Court ruling in January 2021, insurers were expected to pay up to £1.8billion in settlements due to the first lockdown alone. Insurers involved in the ruling were told to settle claims quickly, but recent reports have demonstrated that so far insurers have failed to do so.
This report indicates how it is more important than ever to instruct solicitors in order to represent you in your business interruption claim to ensure you are paid the full amount in loss in income/increased working costs that your business insurance policy permits.
An initial review of your policy document and initial consultation can be conducted for up to 30 minutes and is free of charge, so it is very straightforward to find out where you stand.