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East Midlands Chamber News

Supreme Court ruling on business interruption insurance offers respite for small businesses, says Chamber

Commenting on a Supreme Court ruling today (Friday 15 January) that found in favour of small firms receiving payments from business interruption insurance policies, East Midlands Chamber (Derbyshire, Nottinghamshire, Leicestershire) chief executive Scott Knowles said: “Amid all the doom and gloom of lockdown restrictions, this is a positive day for small businesses, which were told last year their insurance policies would not cover interruption to business caused by the pandemic.

“Cashflow has been one of the biggest issues throughout this pandemic, with our Quarterly Economic Survey showing the amount of cash available to East Midlands companies falling in every quarter of 2020, with no sign of this trend reversing.

“As a result, many businesses have been forced to take on additional loans and, without the necessary Government financial support, many firms that would otherwise be viable are in extreme danger of going out of business. Today’s ruling could provide a lifeline to some of these companies, supporting them to trade beyond the coronavirus crisis.

“Time is now of the essence and it’s important those businesses that stand to benefit get the relevant support to allow them to realise their potential payments. To this end, we welcome the comments from the Association of British Insurers and the proactive approach the organisation and its members are taking to ensure small businesses affected are contacted.”