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8 Mar 2021

Guidance on which single use carrier bags retailers must charge for in each nation

5 Mar 2021

The meeting will take place on Friday 12th March at 10am and will be co-chaired by Ruth Cadbury MP and Selaine Saxby MP

5 Mar 2021

As part of the Cyber Aware campaign, a self-assessment tool for sole traders and micro businesses has been developed

4 Mar 2021

The ACT are proud to once again be supporting the #BikeIsBest campaign, although this time round bringing more to the table as a key partner.

4 Mar 2021

As a member of the cycling trade we want your opinion!

4 Mar 2021

The Greeting Card Association (GCA) have created a both Mother's Day and Easter 2021 toolkit, with the aim of helping retailers promote theseevents in their stores and online.

3 Mar 2021

Key highlights include an extension to the business rates holiday and furlough scheme, as well as new £6000 "restart" grants for non-essential retailers.

3 Mar 2021

The key message to everyone is if you live a short distance from your school, college or university, consider walking or cycling.

3 Mar 2021

Maybe* has made a collection of recent social headlines to help you stay up-to-date.

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...

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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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