Travel agents could be among thousands of small businesses to receive insurance payouts after the Supreme Court found in favour of small firms receiving payments from business interruption insurance policies.
The payouts could provide a lifeline for many, helping them to financially survive the Covid -19 crisis.
ABTA have welcomed the ruling saying: “The Supreme Court judgement today brings welcome clarity for those travel businesses with business interruption insurance.
“What it means in practice is that insurers can’t point blank refuse to pay out citing the pandemic being unprecedented. Instead, it will depend on what is in the terms of the insurance.
“We encourage members who have business interruption insurance, and have had their claim denied, to speak to their insurer or broker about next steps. If the terms account for the circumstances of the pandemic, then the ruling means they should now be entitled to a pay out.”
During the first lockdown last spring, many small businesses made claims through business interruption insurance policies for loss of earnings when they had to close, however many insurers refused to pay out, arguing only the most-specialist policies had cover for such unprecedented restrictions.
Issuing the ruling, Lord Hamblen said the court accepted the arguments from representatives of policyholders and dismissed appeals from insurers against an earlier judgment finding in policyholders’ favour.
The detailed ruling covered issues such as disease clauses, whether business were denied access to the properties, and the timing of lost earnings.
