How long does it take for businesses to get insurance payouts for coronavirus losses?

HOW LONG IT WILL TAKE FOR INSURERS TO PAYOUT BUSINESS INTERRUPTION INSURANCE CLAIMS?

Whether you’re seeking to make a claim under Business Interruption Insurance for losses from coronavirus, or are looking to challenge an existing decision, you will want a resolution quickly. After a year of lockdowns and uncertainty, any wait for decisions and payouts will be tough. The good news is that the issues that delayed and denied claims throughout 2020 have now been largely resolved through the UK courts. 

And now, the most important question for many business owners is how long it will take for insurers to payout…

How long will it take for a decision on COVID-19 payouts to be made by my insurer?

It is difficult to give any precise guidance on how long it will take an insurer to make a decision related to Business Interruption Insurance claims. In our experience, once claims are submitted it takes circa 90 days to reach a decision. 

The FCA (Financial Conduct Authority) is working to ensure that insurers “rapidly conclude their claims processes on claims that the Supreme Court has said should be paid, providing interim payments wherever possible” and has advised business owners to seek advice as soon as possible. 

However, as claimants are reporting, insurers including Hiscox are seemingly using delaying and stalling tactics – perhaps even to frustrate claimants so much so that they do not pursue claims. 

Business owners have been under a vast amount of pressure during the pandemic. Our advice is to be steadfast. Seek support and advice, but above all do not give up hope. 

If the claim is successful, how long will it take for my insurer to payout?

As above, it is difficult to give an exact time frame for payouts. However, insurers have been advised by the court to move quickly and to consider interim payments. This is, however, only advice and the courts have not ruled on time limits for payments. 

The best way to ensure a claim is resolved as quickly as possible is to make it as strong as possible from the outset. A clear, detailed, strongly-argued claim will progress much faster than those that leave any room for doubt. 

Is it too late to make a new Business Interruption Insurance Claim?

No, it is not too late to make a new claim under your Business Interruption Insurance policy. 

However, it is advisable to act swiftly to submit a new claim and to ensure that any claim is presented in the best possible manner.

With the pandemic causing constant flux, Business Interruption is an issue that still very much ‘live’ and is subject to ongoing changes, legal challenges and disputes. Following the latest court rulings, acting quickly puts you in the best position to make your case with the backing of the most current legal rulings behind you. 

To achieve the maximum payout, in the shortest possible time a claim needs to be positioned in the best possible way, with clarity and confidence.

If your business has suffered losses as a result of the coronavirus pandemic now is the time to act and seek an expert policy review. If you have had a claim denied, or are yet to make a claim it is important that you put your best foot forward and have your policy reviewed by an expert insurance lawyer.

Get in touch to discuss your path forward…