Not too late for Covid BI claims

How to Claim Your COVID BI Insurance Payout Before 2026: Part Four

What to Expect After Submission

It is not too late to submit your Covid BI claims.

After submitting your BI insurance claim, the waiting phase begins. Understanding potential outcomes and knowing how to respond effectively becomes essential for securing your rightful compensation. This is where forensic accountants come in.

Possible outcomes: approval, denial, or delay

Upon reviewing your claim, insurers typically respond in one of three ways:

Approval: For straightforward claims aligned with test case rulings, insurers may approve payment quickly. Many insurers have committed to settling valid claims as promptly as possible, with dedicated teams handling these specific cases.
Denial: Some insurers continue to contest claims based on policy-specific exclusions or interpretations. This occurs even after landmark court rulings, as seen in cases involving “closed-list” disease policies.
Delay for assessment: Given the complexity of bi claims, insurers often require time to calculate loss amounts. This process can vary significantly depending on individual circumstances and policy wording.

Expect potential interim payments whilst your claim is being processed. As of March 2023, insurers had settled 43,027 claims related to the FCA test case, with expected COVID-related bi payouts reaching up to £2 billion for losses incurred during 2020.

How to respond to insurer queries

Once your claim is under review, insurers typically request additional information to assess losses accurately. At this stage:

First thing to remember is prompt responses expedite your claim. Provide requested financial documentation clearly organised and labelled.

Given these points, transparency remains vital—accurately report all pandemic-related income, including any government support received. This includes furlough payments, grants or loans that offset losses.

In essence, demonstrating cooperation throughout this process strengthens your position. Maintain detailed records of all communications with your insurer, including dates, names, and summaries of conversations.

When to consider legal advice

Under these circumstances where claims face rejection or significant delays, professional assistance becomes valuable:

Seek legal guidance if your insurer rejects your claim based on interpretations contradicted by recent court rulings. Many businesses previously denied coverage now have valid claims following the Corbin & King and other test cases.

Consider professional help if you’re unsatisfied with the settlement amount offered. Expert advisors can assess whether calculations properly reflect your actual losses.

On balance, legal representation makes particular sense for complex claims or those involving substantial sums. Several firms now offer “no win no fee” arrangements specifically for COVID BI claims, ensuring small businesses can access expert advice.

Conclusion

The clock is ticking for UK business owners affected by COVID-19 lockdowns. Millions of pounds remain unclaimed, yet many eligible businesses still haven’t pursued their rightful compensation. Time limits on these claims are rapidly approaching, with most deadlines set to expire permanently in 2026.

Throughout this guide, we’ve examined how landmark legal decisions have transformed the landscape for business interruption claims. The FCA test case and subsequent Corbin & King ruling created vital pathways for thousands of businesses previously denied coverage. These precedents stand ready to support your claim if your policy contains relevant disease or denial of access clauses.

Evidence gathering remains perhaps the most critical aspect of successful claims. Financial records, documented government restrictions, and proof of COVID-19 presence near your premises form the backbone of compelling applications. The FCA COVID calculator serves as a particularly valuable tool for establishing disease proximity requirements.

Submitting your claim properly requires careful attention to detail. Contact with your broker should happen without delay, followed by clear documentation of losses and comprehensive evidence collection. After submission, you might face approval, denial, or assessment delays – each scenario requiring different responses from you as a policyholder.

Legal assistance becomes worthwhile if insurers reject valid claims or offer inadequate settlements. Many legal firms now specialise in COVID BI claims, often working on contingency arrangements that make professional help accessible even to smaller businesses.

Above all, remember that these funds represent compensation you may be legally entitled to receive. Countless UK businesses have already secured substantial payouts following initial rejections. Your business deserves the same opportunity, but only if you act before the rapidly approaching deadlines.

Take action today. Review your policy documentation, gather your evidence, and begin the claims process. The financial relief your business deserves might be just an application away.