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Business Interruption Insurance

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tog

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Is anyone going to try and claim on their Business Interruption Insurance, now that we've had a High Court Judgement involving 8 big insurance companies who have been told they have to pay out?
I have just read that the FCA (Financial Conduct Authority) are going to issue a Q&A document for policyholders, giving guidance on who is now entitled to claim. I hope some of us who are really struggling will make successful claims.
 

Holly1991

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Tried today got rejected 😩 will be checking whether it’s something I’m paying extra for if it is it’s being cancelled!
 

Chinju

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Hi I put in my claim with Salon Gold about a month ago and to date I have not heard from them.
Also I have not heard from the local council about the National lockdown grant. Any of you got it yet ?

Many thanks
X
 

tog

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Hi I put in my claim with Salon Gold about a month ago and to date I have not heard from them.
Also I have not heard from the local council about the National lockdown grant. Any of you got it yet ?

Many thanks
X
If that's the 4th SEIS grant from central governement which you're referring to, it won't be officially announced/awarded until March I believe.
If it's one from your local council, they all seem to do things differently. Sometimes you need to look on their website and apply for it. They don't always inform you about what you're entitled to.
 

Chinju

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If that's the 4th SEIS grant from central governement which you're referring to, it won't be officially announced/awarded until March I believe.
If it's one from your local council, they all seem to do things differently. Sometimes you need to look on their website and apply for it. They don't always inform you about what you're entitled to.
Thank you for your reply. I applied for the the 3rd lockdown grant which is available from January and the council asked me to submit the forms. Which I did about a month ago and no news to date.
What’s the 4th SEIS grant ? I am not sure I know if this grant.
Thank you
 

Hannahm36

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Tried today got rejected 😩 will be checking whether it’s something I’m paying extra for if it is it’s being cancelled!
If they’re saying you can’t claim it and you’ve been paying extra for it then I’d be asking for all the extra premiums inc interest back from them! Similar think to PPI... if you were never going to be able to use it then it shouldn’t have been added on!
 

Chinju

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If they’re saying you can’t claim it and you’ve been paying extra for it then I’d be asking for all the extra premiums inc interest back from them! Similar think to PPI... if you were never going to be able to use it then it shouldn’t have been added on!
I agree, I got mine removed from the insurance and only pay for the premise and contents. I wish I had done that in the first lockdown too. I think it’s too late to ask for the money back now.
 

tog

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Thank you for your reply. I applied for the the 3rd lockdown grant which is available from January and the council asked me to submit the forms. Which I did about a month ago and no news to date.
What’s the 4th SEIS grant ? I am not sure I know if this grant.
Thank you
It's the self-employed income support scheme, which are the grants which have been given by HMRC to people who are self-employed and have 3 years of accounts. (which they use to calculate how much you're entitled to). There have been 3 so far. And the next will be announced in March I believe. You have to submit a claim each time and they tell you if you're entitled to it.
You don't apply to your local council for this grant, it's done via the HMRC website.
 

Chinju

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It's the self-employed income support scheme, which are the grants which have been given by HMRC to people who are self-employed and have 3 years of accounts. (which they use to calculate how much you're entitled to). There have been 3 so far. And the next will be announced in March I believe. You have to submit a claim each time and they tell you if you're entitled to it.
You don't apply to your local council for this grant, it's done via the HMRC website.
Thank you for your reply. I have a limited company so that will not apply to me,as I have a salon in the High Street
Thank you once again.
 

tog

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Thank you for your reply. I have a limited company so that will not apply to me,as I have a salon in the High Street
Thank you once again.
Just for the record, I think it's crazy that people like yourself, who still have business expenses, are not entitled to the SEISS grant - the way the grants have been allocated doesn't seem entirely fair to me, and some have slipped through the net.
 

Chinju

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Just for the record, I think it's crazy that people like yourself, who still have business expenses, are not entitled to the SEISS grant - the way the grants have been allocated doesn't seem entirely fair to me, and some have slipped through the net.
Yes I agree. Also the govt’s Kickstart scheme is only suited for big corporations like chain supermarkets and coffee shops. My application got rejected as I am not a big company and also it’s a woman’s industry. It’s ridiculous!
 

Chinju

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Is anyone going to try and claim on their Business Interruption Insurance, now that we've had a High Court Judgement involving 8 big insurance companies who have been told they have to pay out?
I have just read that the FCA (Financial Conduct Authority) are going to issue a Q&A document for policyholders, giving guidance on who is now entitled to claim. I hope some of us who are really struggling will make successful claims.
Finally got the reply from Salon Gold and my claim got turned down. Apparently pandemic is not covered by them. I have a feeling few years down the line someone will chase all the insurance companies and they will have to eventually pay out. Remember all those years ago all the banks had to pay out for something called PIP ( maybe I got the name wrong) ? lets hope for the best :) xx
 
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TheDuchess

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I disagree with cancelling business interruption insurance. It’s not intended to cover a pandemic which is a global once in 100 years event. That’s something that affects a whole society and insurance isn’t intended to cover things like that. I know it seems harsh. But some big events are never covered by insurance, like war, for instance.

The basic principle of insurance is that things are covered unless the policy states “only these things are insured” or it says “these things are not included”.

Some insurance policies didn’t mention pandemics either way because the insurance contract writers slipped up.

Most big insurance companies made sure to “improve” their wording after SARS and MERS. However some companies thought “what’s the worst that can happen?” They thought a pandemic wouldnt be that bad in a modern society and made a decision to cover an event that they didn’t think would happen catastrophically and would only affect a few businesses for a few months.

Some insurance companies used the phrase notifiable disease because they intended to cover food poisoning and things like scarlet fever (not sure if this is notifiable but you get the idea). Unusual illnesses. Not a pandemic. So that’s why there was an argument in U.K. Courts but it only covers a small number of policies..

What business interruption covers - and this is essential and really important - is the delay between something that causes a claim on your insurance and getting back up and running again. So for instance a fire might destroy your business premises, but whilst you wait for a cheque and the work to be done you can’t trade. Business interruption cover underwrites your lost profits for a period of time. It’s the same if you were broken into, or had a car crash into your shop front, as well as the cost of making good you also can claim for being closed.

There are a few cases where you aren’t claiming for being closed for fire or flood or theft but you can still claim on your business interruption insurance. I used to be an insurance broker abd some of the more unusual claims we had was a business that was closed for a police investigation because of a death on the premises.

There was a lot of upset after a foot and mouth outbreak closed down hotels and tea shops in the countryside. People were very upset that they couldn’t claim on their insurance and companies like Hiscox, who don’t insure farms, thought “ok, we could have covered these losses” and they deliberately rewrote their policies to include noticeable diseases.

End of history lesson...
 

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