HU UPDATE - DO YOU HAVE A VALID BUSINESS INTERRUPTION CLAIM - STATEMENT ON DRAFT BUDGET CONSULTATION
19 January 2021
BUSINESS INTERRUPTION INSURANCE RULING: DO YOU HAVE A VALID CLAIM?
On Friday 15th January 2021 the Supreme Court handed down judgment in the Covid-19 Business Interruption Insurance test case and found largely in favour of policy holders receiving payments from business interruption insurance policies.
The complex ruling, which mainly dealt with disease clauses and prevention of access clauses, will reportedly impact 700 types of policies, 60 insurers and 370,000 small businesses.
It is great news for policy holders and means that many insurance companies, who declined to pay out following the enforced closure of hospitality businesses last March, will now be lawfully bound to compensate policy holders.
It should be noted that although the judgment is largely in favour of insurance policy holders it does not mean that all insurance policies will respond. Only sample wordings were considered in the test case, and underwriters may seek to distinguish their policy terms. Each policy, therefore, needs to be considered against the detailed judgment to work out what it means for that policy.
Hospitality Ulster’s legal partner McCartan Turkington Breen Solicitors has a specialist team on hand to review HU members’ policies, together with the Judgment, and provide you with clear, straightforward advice.
As part of your Hospitality Ulster membership, you have access to the HU Legal helpline, provided by McCartan Turkington Breen Solicitors which include Business Interruption policies.
HU MEMBERS: If you are unsure if you have a valid claim under your insurance policy, please call the HU Legal Helpline on 02890329801.
HU STATEMENT ON DRAFT BUDGET CONSULTATION
Reacting to the publication of the consultation on the draft budget late yesterday evening by Finance Minister Conor Murphy, Colin Neill Chief Executive, Hospitality Ulster, said:
“The intention to maintain rates relief in the draft budget is to be welcomed, especially when things are so very tough in the hospitality sector now and will take a long time to recover. Every element of economic support is required. However, critically, this support does not meet the actual need and will not cover a full year for many. We have to support the Finance Minister in his call to force Westminster and the Treasury to step up to allocate the badly needed additional funding."
“We find ourselves in a dire situation in the hospitality sector and it is likely that we will be closed beyond the next UK Budget in March and we need to see financial pressures taken off business owners right across the industry.”
“It is disappointing that this is a budget for only one year. We need a budgetary cycle of at least three years to allow for longer term planning and certainty. We need cash injections now for any chance of future survival, Westminster must recognise that.”