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23 Feb 2021

The report provides key insights into the social and economic contributions of the rural shop sector, including profiles of the entrepreneurs that run rural shops, the investments they make and...

22 Feb 2021

The recycling scheme aims to reduce the tens of thousands of tonnes of scrap bike tyres and inner tubes that endup in landfill every year in the UK alone

18 Feb 2021

Leading industry bodies, including IRC members, have warned the Secretary of State that this notion puts the future of our town centres at serious risk

18 Feb 2021

Due to a stock clearance all Take it outdoors POS is now reduced to £0! All you need to pay for is postage

18 Feb 2021

From 1 June 2021 any UK businesses accepting online card payments must be ready to support SCA

17 Feb 2021

The Scottish Government Finance Secretary plans to extend 100% business rates relief for all retailers to cover all of 2021/22

17 Feb 2021

Sharpen up your employees' knowledge and skills in preparation for the peak cycling season.

16 Feb 2021

All ACT members are invited to join the webinars, please contact us if you'd like to attend

10 Feb 2021

Use this template to email your MP to help independent retailers survive the pandemic by delaying the return of business rates.

10 Feb 2021

Letter to Rishi Sunak signed by Tesco, B&Q, Waterstones, and members of the IRC, calls for the business rates system to be reformed to make it fairer for physical stores

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Insurers pay tens of thousands to small businesses for Covid lockdown losses

Posted on in Business News , Cycles News

Following today's Supreme Court ruling tens of thousands of small businesses will receive insurance payouts covering losses from the first national lockdown.

After the announcement of the first lockdown in March, the Treasury Select Committee, led by Mel Stride MP, challenged the Association of British Insurers (ABI) regarding the support offered to business via their members, with specific regard to business interruption insurance.

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 Committee sought to clarify where business insurance support had ceased to be offered or policy terms had changed and exclusions added, since the pandemic began.

Government appeared to expect that business insurance policies would provide funding support for independent retailers through the provision of cover for coronavirus related costs after it added COVID-19 to its list of notifiable diseases.

 

A united stance amongst Trade Organisations

On March 31st the Independent Retailers Confederation (IRC), led by the ACT and ActSmart, called upon Government and insurance brokers to challenge policies where there is ambiguity.

The IRC is a well-established organisation representing over 100,000 independent retailers throughout the UK, it brings together like-minded trade associations with interests in the small and independent retail sector.

Information was collated through the trade organisations that make up the IRC from retailers that had made a claim for business interruption which was denied by the insurer. This information was collated and put towards lobbying the government on this issue.

The case has been ongoing for many months, with the Supreme Court today ruling in favour of small firms receiving payments from business interruption insurance policies.

For some businesses it could provide a lifeline, allowing them to trade beyond the coronavirus crisis. The ruling could cost the insurance sector hundreds of millions of pounds.

 

Insurers to pay out on many, but not all, policies

It is important to note that while this is certainly a victory for many small businesses, this does not now mean that all insurers are required to start paying out. The insurance payout is entirely dependent on the clarity of the policy wording. The case put forward to the Supreme Court was against a small number of insurers and specific policy wordings.

Whilst the case evaluated was a ‘test' case, there is now hope that other insurers with the same/similar wordings will feel that they should also follow the ruling- for both good conscience and to avoid individual litigation.

Long-standing ACT partner and insurance specialists Butterworth Spengler have made the decision to re-visit any claims made by clients where this ruling may now have an impact. They would also like to highlight that their claims team is available to consider any questions from clients.

 

 

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