Commission-hungry claims firms target Covid-hit businesses
No-win-no-fee solicitors and claims management companies are aggressively advertising following a Supreme Court judgment on business interruption
Some firms are looking for a cut of up to 40% of any damages
Businesses may be able to avoid costly legal fees if they first go to their broker
CMCs and solicitors maintain they provide a vital service and argue not all insurers will play fair on claims
The publicity surrounding BI cover has encouraged new entrants into claims management
Policyholders need to be wary of clone firms and scammers that are not regulated
Industry commentators warn BI must not go the way of PPI where it comes to CMC tactics
Business owners and representatives here have welcomed a Supreme Court ruling that insurance companies must pay out to small traders for coronavirus-related disruption.
The Supreme Court ruled largely in favour of an appeal by the Financial Conduct Authority (FCA) following widespread concern over the lack of clarity and certainty for firms seeking to cover substantial losses incurred by the pandemic and first lockdown.
Retail NI chief executive Glyn Roberts said: This is a welcome ruling for local small businesses and independent retailers who felt that insurance companies were avoiding their responsibility to pay out on premiums. Insurance companies must now ensure that early payment is progressed to many thousands of struggling local businesses. Colin Neill, chief executive of Hospitality Ulster, said: The hospitality sector here needs every single bit of help to make sure that those who have made it this far don t go to the wall after weathering an extremely difficult
Insurers told to pay small businesses for lockdown losses MANY small businesses will receive insurance payouts covering losses from the first national lockdown, following a ruling from the Supreme Court. It will pave the way to insurance payouts on claims for coronavirus-related disruption, for those with business interruption insurance policies. The Supreme Court ruled largely in favour of an appeal by the Financial Conduct Authority (FCA) following widespread concern over the lack of clarity and certainty for firms seeking to cover substantial losses incurred by the pandemic and first national lockdown. The Federation of Small Businesses welcomed the ruling, saying many firms had been left in financial limbo over the past year.