Lifeline for Solicitors with Business Interruption Insurance
posted 15th January 2021
Those solicitors practices that had Business Interruption Insurance can now look to receiving a pay-out on their policies following a ruling from the Supreme Court.
In the lockdown of last spring, a number of Solicitors firms and other businesses made claims through business interruption insurance policies for loss of earnings when they had to close.
Most insurers refused to pay, arguing only the most specialist policies had cover for such unprecedented restrictions.
It was agreed that a selection of policy wordings should be tested in court, setting the parameters for what would be considered a valid claim.
The ruling provides guidance for a wider pool of 700 policies, potentially affecting 370,000 Solicitors and smaller businesses.
Giving the court's ruling, Lord Hamblen said the court accepted the arguments from representatives of policyholders and dismissed appeals from insurers against an earlier judgement finding in policyholders' favour.
The complex ruling covered issues such as disease clauses, whether solicitors and other businesses were denied access to the properties, and the timing of lost earnings.
This test case will have a dramatic impact on solicitors firms that were denied a pay out against their policy and can recover loss of earnings from being unable to operate from their offices during the lockdown last March.
Sadly I am still hearing tales of solicitors firms that did not have such policies and poor IT systems that are forcing all fee earners and support staff to come into a packed office with little social distancing.
At last the forward thinking Solicitors firms that had BII insurance and a robust IT platform can receive the money due to them.
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