The Supreme Court has ruled in favour of small businesses receiving payments from business interruption insurance policies.
Following the ruling, it is expected that tens of thousands of small businesses will receive insurance payouts covering loss of profits from the first national lockdown. Whether you can qualify will need to be discussed with your insurer/broker.
The case only covers the first lockdown. If extended to the subsequent lockdowns, either local or national, then any sole traders or partnerships that have made claims under Self-Employed Income Support Scheme (SEISS) may need to repay some of the grants.
The third version of SEISS required the claimant to declare any anticipated significant reductions in their trading profits. Therefore, if the insurance claim replaces those profits then there will not be a significant reduction in profits and consequently, the SEISS grant will need to be repaid.
If you would like assistance with evaluating the potential losses for your insurance claim then please contact your TC partner on 0330 088 7111 or visit www.tc-group.com.