Business Disruptions Due to COVID19

Business interruption claims are a way for your business to be compensated for any financial losses incurred because of COVID-19, in the event that your insurer fails to pay out.

At Renewable 4 You, we assist those affected to pursue compensation through business interruption claims against insurers.

There are numerous areas that you can make a claim for, including:

  • Wages
  • Actual and/or forecast loss of revenue
  • Business costs such as rent, even when not trading
  • Loan charges from loans acquired due to COVID AM

 

Am I eligible?

  • If you have an insurance policy that covers business interruption and have been affected by COVID then you may be eligible for a claim. This is even if your business has not had an unsuccessful claim for business interruption insurance.
  • Contact us today to move forward.
  • We operate on a no-win-no-fee basis. We will not charge you upfront for starting a business interruption claim with through us.
  • In the unlikely event that your claim is unsuccessful, you will not pay a penny. We charge a success fee that comes out of the money paid by the insurer.
  • Our solicitors have the expertise required to work through insurance policies, as well as handling the legal side of your claim.
  • We make sure that everything is dealt with professionally to help you get what you are owed.
  • Our dedicated legal teamwork with specialised forensic accountants.
  • Because of this, we can ensure that you get everything that is owed to you (subject to indemnity caps).
  • We are experts in commercial and insurance law and our team have extensive experience representing businesses in a variety of circumstances.
  • Even if you have not had a claim denied, we can ensure the claim is not unsettled by robust negotiations.

In assessing whether a business is eligible for a Business Interruption Claim, it must be established that their insurance policy contained certain wording.

For example, in the case of COVID-19, policies that do not clearly state that they cover businesses for infectious disease or public authority closures may have been automatically rejected.

A lack of complete information surrounding the disruption to the business and estimated financial losses could also lead to automatic rejection.

WHAT TO LOOK FOR

  • Has the business suffered a loss?
  • Does the policy-wording cover infectious disease?
  • Does the policy allow closures by public authority?
  • Was the business within a 25 mile radius of a record of COVID?
  • What was the health of the business prior to COVID?
  • What restrictions were placed upon the business?

Hospitality including, Restaurants • Cafés • Bars • Pubs • Cinemas • Theatres • Food retailers • Petrol stations • Pharmacies

All other retail businesses

Professional services including • Law firms • Accountancy firms • Banks • Consultancies • Construction firms

Key industries to concentrate on include: Manufacturing firms • Accommodation businesses • Holiday and leisure businesses • Schools • Nurseries • Places of worship

Examples;

Manchester construction firm recovers £113,408, Our client was one of the many construction firms whose operations were suspended. The company uses technology to develop windows, doors and roofing solutions for property, with a particular focus on energy-efficient homes and offices. A reduction in staff meant they were unable to fulfill many of their contracts in time. Their insurer did not honor their Business Interruption Insurance policy, however, we explained that since the High Court ruling on 15th September 2020, their insurer was legally bound to pay. Our client successfully claimed £113,408, money that will help them to rebuild and move the business forward when they are able.

Independent Bristol cinema recovers £27,604 Like thousands of other venues, our client was forced to close and therefore struggled to continue to pay rent while they were unable to show films or continue with their creative courses. We took on their case and managed to secure them almost £30,000 that helped to cover their debts and allowed them to work towards a new business model.

Agriculture ,Forestry,& Fishing  UK dairy farmers suffered heavy falls in milk prices, making a quarter of them financially unviable in April. It is estimated that due to travel restrictions, the UK will face a shortfall of 80,000 seasonal agricultural workers this year. This has been reflected in falling production. Agricultural output fell by 4.8% in the three months to June 2020. Even with an increase of 1.1% in July, it remained 2% below February 2020’s level. Many companies involved in agriculture, forestry and fishing have lost money due to COVID-19 and could seek Business Interruption Claims as a result.

East Anglian food producer recovers £74,383.Our client, a producer of poultry products had deals to supply supermarkets across Europe; however, when COVID-19 restrictions hit the UK, they suffered a huge shortfall in staff. Restrictions meant that they couldn’t transport their food as easily and a reduced workforce meant production levels decreased. Contracts went unfulfilled and business suffered as a result. Social distancing measures meant that their usual operations became extremely difficult.

In the three months to June, the ONS reported that manufacturing output fell by over a fifth. As travel and transport was significantly affected, the manufacture of transport equipment fell by 49.1%. Car manufacturing has notably suffered too, Furniture manufacturer recovers £43,210 The closure of retail stores across the world had a significant impact on our Aberdeenshire-based client’s business. Having been forced to close, many stores cancelled their orders to save money, leaving our client with excess stock. A fall in new homes being built meant that they couldn’t rely on the revenue ordinarily generated by property developments. With us, they were able to claim £43,210 in compensation. MANUFACTURING with every major carmaker reducing production resulting in an 18% decrease. Almost half (46.7%) of manufacturing firms reported to the ONS in September that their revenue was lower than usual for the time of year.

Furniture manufacturer recovers £43,210 The closure of retail stores across the world had a significant impact on our Aberdeenshire-based client’s business. Having been forced to close, many stores cancelled their orders to save money, leaving our client with excess stock. A fall in new homes being built meant that they couldn’t rely on the revenue ordinarily generated by property developments. With us, they were able to claim £43,210 in compensation.

The hospitality industry has arguably seen the most significant disruption. As of July 31st, 43% of employees in this sector were on furlough. While the Eat Out to Help Out scheme during August lead to an increase in patronage, many businesses still reported that they struggled. The ban on social gatherings of more than six people further impede these establishments’ ability to operate.

Restaurant successfully claims £51,764 Our Sheffield-based client, like thousands of other restaurants, was forced to close. While they continued to offer take out, the revenue generated was substantially lower. Their landlord refused to reduce the rent on their unit, and due to a significant loss of income, the business had to take out a loan to cover the costs. We  were able to successfully led them to compensation of £51,764, which has helped them to pay their debts and purchase the required equipment to make their business COVID-secure.

 

 

 

 

 

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