Insurers must pay small firms for Covid lockdown losses

[rollover]

Tens of thousands of small businesses are set to receive insurance payouts covering losses from the first national lockdown, following a court ruling.

In the lockdown of last spring, many small businesses made claims through business interruption insurance policies for loss of earnings when they had to close. But many insurers refused to pay, arguing only the most specialist policies had cover for such unprecedented restrictions. The ruling provides guidance for a wider pool of 700 policies, potentially affecting 370,000 small businesses.

The ruling could cost the insurance sector hundreds of millions of pounds.

BBC

[Fromage Frais]

Will see how this goes.

Still has a way to go as they are fighting a rear guard action on this and look like they are playing for time so that as many companies fail as possible before they are forced to pay anything.

[Wayward]

Aviva share price currently little changed.

[Sprite]

Very good, I work in the insurance industry and we dont want to be associated with this type of thing.

It mainly affects Hiscox and some of the lloyds syndicates. Not sure Aviva do much on busines interruption insurance.

[Odysseus]

If a company gets paid out will it be net of government support eg grants, furlough, rates relief etc. If so, would this then be passed to the treasury? If the ruling means some of the insane government spending can be recouped It’s got to be good thing.