As the sixth anniversary of COVID-19 being declared a notifiable disease approaches, businesses with unresolved insurance claims are being urged to act urgently to avoid being time-barred from recovery.
COVID-19 was declared a notifiable disease in the UK in March 2020. As a result, many business interruption (BI) insurance claims arising from the pandemic are now nearing the end of the six-year limitation period. Any claims that remain unsettled or unissued may soon be out of time.
Businesses across all sectors were significantly impacted by the pandemic, with losses caused by government-ordered closures, tiered restrictions and disruption to normal operations. While some policyholders were ultimately successful in recovering losses following legal clarification of policy wordings, many businesses were unable to recover losses where policies did not respond to such an unprecedented event.
Cathy Harris, partner and litigation specialist at Clarke Willmott LLP, continues to act for businesses pursuing BI insurance claims arising from the pandemic, and is currently representing two businesses with ongoing claims.
Cathy said: “Unfortunately, many businesses suffered substantial losses during the pandemic but found that their insurance policies did not provide the cover they expected. Others may still be pursuing claims without realising that limitation is now fast approaching.”
Some businesses may still be challenging insurers directly, via brokers, or with advisers who may not be actively progressing matters to protect limitation. Without issuing proceedings or taking appropriate steps to preserve claims, potential recoveries could be lost entirely.
Cathy urges businesses with unresolved COVID-19 insurance claims to take immediate action:
“If claims remain unresolved, or if businesses are pursuing matters without legal representation or solely through brokers, urgent steps should be taken now. Failure to act could result in claims becoming time-barred, removing any opportunity for recovery.”
Businesses are advised to seek specialist legal advice as soon as possible to assess their position and preserve any remaining rights before limitation expires.
Clarke Willmott is a national law firm with offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton and Taunton.
For more information visit Commercial Litigation & Disputes – Clarke Willmott Solicitors