Landmark Supreme Court Ruling Allows Small Businesses to Claim for Business Interruption from Insurances

The Supreme Court found largely in favour of small firms receiving payments from business interruption insurance policies. Under the ruling, more policyholders will now have valid claims against insurers for the disruption they've faced due to the pandemic.

The Supreme Court ruled that insurers have to pay out for partial closure of premises - as well as full closure - and for mandatory closure orders that were not legally binding. This therefore only applies to insurances which include cover for businesses interruption.

During the first lockdown, many beauty salons and therapists found themselves without support from their insurance, as they avoided paying out by claiming the insurance did not cover a global pandemic or government mandated closures. The supreme court has now ruled in support of those who had business interruption cover - therefore, it’s important to check the fine print of your insurance to check if you business interruption is part of your cover.

Beautyguild.com insurance has already shared information that their policy holders will not be affected by the supreme court decision. In their statement they have said;

“The Supreme Court ruling on 15th Jan 2021 was in regards to insurance policies that included cover for business interruption. The Guild's membership policy covers treatment, public and product liability; it does NOT include cover for business interruption and hence the Supreme Court ruling does not affect our policy.”

But as beauty therapists brace themselves to claim money from their insurers if they have business interruption cover, fears are for many on the insurance premiums that may rise due to the setback for the insurance sector.