Business Interruption Claims

What Are Business Interruption Claims?

Business interruption insurance is designed to cover the loss of income and ongoing expenses that a business suffers when it cannot operate normally due to unexpected circumstances. This insurance is particularly important for small and medium-sized enterprises (SMEs) that may lack the financial cushion to withstand prolonged periods of disruption. Business interruption claims can be filed for various reasons, including:

• Natural Disasters: Events such as floods, fires, or storms can halt business operations, damage property, and create unforeseen costs. Business interruption insurance can help cover the financial losses incurred during these times.

• Pandemics and Health Crises: The COVID-19 pandemic highlighted the importance of business interruption insurance. Many businesses experienced forced closures, reduced customer traffic, and other operational challenges due to health and safety measures. Insurance claims can help cover the resulting financial impact.

• Supply Chain Disruptions: If your business depends on a particular supplier or service provider and their operations are disrupted, this can directly affect your ability to function. Business interruption claims may provide compensation for these losses.

• Cyberattacks and IT Failures: In the digital age, cyberattacks and IT system failures can cause significant interruptions to business operations. If a cyberattack or system failure causes your business to stop trading, you may be eligible for compensation under a business interruption policy.

How to Make a Business Interruption Claim

Filing a business interruption claim can be a complex and time-consuming process. To make sure you’re fully compensated for the losses your business has suffered, it’s important to follow the right steps and ensure that you meet the criteria set by your insurer. Here’s a general guide to making a business interruption claim:

1. Review Your Insurance Policy: The first step is to carefully review your business interruption insurance policy to understand what coverage you have. Policies vary in terms of what they cover and the exclusions that may apply. At this stage, it’s important to identify if the cause of your business interruption is covered under your policy.

2. Assess the Losses: Document and calculate all the losses your business has incurred due to the disruption. This includes the loss of income, increased costs, and any other financial setbacks caused by the event. Keep detailed records of your losses, such as financial statements, sales data, and correspondence with clients or suppliers.

3. Notify Your Insurer: Contact your insurance provider as soon as possible to report the interruption and start the claims process. Provide them with the necessary information, including details of the event, your financial losses, and any supporting documentation.

4. Seek Expert Legal Advice: If you encounter difficulties with your claim, such as disputes over coverage or the amount of compensation, it’s advisable to consult a solicitor who specialises in business interruption claims. HPA Solicitors Ltd can guide you through the process and help ensure that your claim is properly handled.

5. Prepare for a Settlement: Once your insurer has reviewed your claim, they may make a settlement offer. If the offer is inadequate or if there are disputes over the amount of compensation, we can help negotiate with your insurer or pursue further legal action if necessary.

Why Choose HPA Solicitors Ltd?

At HPA Solicitors Ltd, we have extensive experience handling business interruption claims and ensuring that businesses receive the compensation they deserve. We understand how challenging it can be to navigate the claims process, especially when dealing with complex insurance terms and conditions. Our team is committed to providing clear, reliable advice and dedicated support throughout your claim.

Whether you need help understanding your policy, calculating your losses, or negotiating with your insurer, we are here to assist you at every stage. Our solicitors work with businesses of all sizes and industries to secure compensation and minimize the financial impact of disruptions.

Contact Us Today

If your business has suffered due to unexpected disruptions and you believe you are entitled to a business interruption claim, don’t hesitate to get in touch with HPA Solicitors Ltd. Our team of legal experts will assess your situation, guide you through the claims process, and work tirelessly to ensure that your business receives the compensation it needs to recover and thrive. Contact us today for a free, no-obligation consultation.