Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Small firms could be entitled to thousands from insurers after Covid payment ruling

by May 17, 2023
May 17, 2023
Small firms could be entitled to thousands from insurers after Covid payment ruling

Hundreds of thousands of small businesses that claimed on their insurance during the Covid pandemic but had their payouts delayed could be owed thousands of pounds after a ruling by the UK’s financial ombudsman.

In what campaigners say is a key test case, the complaints body has ruled that a dental practice whose claim had been initially declined but later approved should be paid interest by QBE, one of the largest insurers in the world.

The ombudsman has ruled that an 8% annual rate of interest should be paid on the sum pro rata over the period between the claim being declined and it being paid, opening up the potential for many more businesses to make similar claims.

About 370,000 small businesses, from restaurants and bars to hairdressers and guesthouses, made insurance claims to a total value of approximately £1.2bn after the coronavirus lockdowns left them unable to trade.

Many of those policyholders – including the former footballer Gary Neville, who co-owns two hotels with his former Manchester United teammate Ryan Giggs – had their claims initially declined on the grounds that the business interruption policies were not designed to cover a government-imposed lockdown.

In 2020, the high court found in favour of policyholders after the Financial Conduct Authority brought a test case to court, but six of the eight insurers named in the case: Arch Insurance, Argenta, Hiscox, MS Amlin, QBE and RSA – appealed.

It was not until the supreme court ruled in the policyholders’ favour in 2021 that the claims were paid out. The dental practice, in Cornwall, made its claim against QBE, with the support of loss adjusters Salmon Assessors.

Jeff Salmon, the chief executive of Salmon Assessors, said: “It’s important to stress that this additional payment only applies to policyholders who made successful business interruption claims.”

The dental practice had made its initial claim in April 2020 but did not receive their payout and £250 in compensation until “late 2021”, with QBE advising that it would wait for the supreme court to make its judgment before settling the claim.

In the judgment, the ombudsman concluded that QBE should pay a further 8% interest from two months after the dentistry practice made the initial claim.

“The Covid-19 pandemic and surrounding circumstances presented a novel situation for insurers,” the ombudsman wrote. “I recognise that there was some uncertainty about whether the wording of certain types of clause would cover claims. This was part of the reason for the FCA test case. But whilst the court judgments provided clarity, this does not mean QBE was unable to have reached a different conclusion to the one it did prior to the judgments.”

A QBE spokesperson said: “We have complied with the ruling of the ombudsman for this individual complaint and consider this matter closed.”

Read more:
Small firms could be entitled to thousands from insurers after Covid payment ruling

0
FacebookTwitterGoogle +Pinterest
previous post
New HMRC figures show EIS investment grew 39% in 2021/22
next post
Over half of farmers aren’t confident about the future of British food production 

You may also like

How can expense management software streamline your business’s...

January 11, 2023

UK to boost domestic weapons production to cut...

April 21, 2025

Revolut launches Homes feature to take on Airbnb...

October 19, 2022

Government launches £40 million fund to unlock 5G...

August 1, 2023

Skarper secures additional £4m in funding for innovative...

April 12, 2023

Code First Girls Teaches Tech Skills to Over...

June 20, 2024

Creating a Supportive Workplace for Recovering Alcoholics

October 17, 2023

John Lewis CEO criticises Rachel Reeves over ‘two-handed’...

November 21, 2024

Amazon Christmas marketing push pays off with higher...

February 3, 2023

Rechargeable and Waterproof HQD Tech Vapes: The Future...

July 13, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk feud presents ‘unprecedented’ dynamic compared to past Trump disputes: expert

      June 7, 2025
    • Snub of Musk’s NASA nominee ally preceded sudden ‘big, beautiful bill’ criticism, Trump feud

      June 6, 2025
    • Supreme Court rules DOGE can access Social Security information

      June 6, 2025
    • US sanctions money laundering network aiding Iran as regime faces nuclear reprimand at IAEA

      June 6, 2025
    • From Tariffs to Tech: Where Smart Money’s Moving Right Now

      June 6, 2025
    • Your Weekly Stock Market Snapshot: What It Means for Your Investments

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,019)
    • Politics (15,556)
    • Stocks (3,134)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved