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.


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Simon Bladen Partner

Simon Bladen

Partner, Sheffield

0114 266 7141

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