The Supreme Court has ruled largely in favour of small businesses receiving payments from business interruption insurance policies. These payments are to cover losses from the first national lockdown. This news will be a relief to many small businesses that may need this insurance payment in order to survive. This ruling is likely to cost the insurance sector hundreds of millions of pounds.
This case came about last spring when many businesses made insurance claims through their business interruption insurance policies when they were forced to close. However, a large number of insurance providers refused to payout. Many providers argued that only the most specialist policies provided cover for unprecedented restrictions as a result of COVID-19. However, the Supreme Court dismissed these appeals from insurers and ruled in favour of policyholders.
This ruling will potentially affect 370,000 small businesses, although only some of these will end up with pay-outs. The ruling also provides guidance for a bigger cross-section of 700 policies.
How can we help?
At Hawsons we have a dedicated team of accountants at our offices in Sheffield, Doncaster, and Northampton. Our small business experts can provide a range of tax and accountancy services to small and growing businesses.
More from our tax experts
You can find all of our latest tax articles and tax resources here.
If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.
Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.
Free initial consultation
0114 266 7141
More similar articles
In June 2021 the cost of running a factory increased at a record rate. This news caused concerns that prices of British-made goods will rise during the second half of 2021. According to the IHS Markit monthly survey of the manufacturing industry, manufacturers paid...
What has caused a driver shortage? There are many factors that have contributed to the shortage of HGV drivers. The global pandemic has certainly been a major issue as many European drivers decided to return home, with haulage companies reporting that only a fraction...
The government has confirmed that employers of all sizes in England can now apply for £3,000 in extra funding to help them take on new apprentices. The boost to the apprenticeship incentive scheme was confirmed by Chancellor Rishi Sunak in the Budget in March. The...
Freeport operators will be able to take advantage of a zero rate of secondary national insurance contributions (NICs) for employees, the government has announced. The National Insurance Contributions Bill 2021, which legislates reliefs for those operating in...