Insurers told to pay out to SME’s over COVID-19 Losses

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This morning (Friday 15th Jan), the Supreme Court has ruled that Insurance companies must pay out to small businesses due to the first lockdown back in March/April 2020.

The Supreme Court found in favour of small firms receiving payments from business interruption insurance policies.

The City watchdog, the Financial Conduct Authority (FCA), brought the test case, with eight insurers agreeing to take part in proceedings.

Sheldon Mills, from the FCA, which brought the case on behalf of policyholders, said:

“Coronavirus is causing substantial loss and distress to businesses and many are under immense financial strain to stay afloat. Today’s judgment decisively removes many of the roadblocks to claims by policyholders.

“We will be working with insurers to ensure that they now move quickly to pay claims that the judgment says should be paid, making interim payments wherever possible.”

Businesses which had business interruption policies in place during the first lock down should contact their insurance companies to discuss further.

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