Insurance Disputes

The first step would be to review the policy to assess the extent of cover and thus the merits of issuing proceedings against your insurer.

Our team will review your policy and provide comprehensive advice in a timely manner, if there is a potential claim against your insurer, we will support you every step of the way to deliver the best possible outcome.

Business interruption policies are usually an ‘add-on’ to commercial property insurance and generally provide cover for losses caused by damage to property or equipment by standard risks such as fire, flood, theft or accidents involving employees.

As a standard business interruption policy is designed and priced to cover such risks, it is unlikely to cover the effects of COVID-19. However, there are several extensions to such a policy that might, such as restricted access cover or non-damage business interruption caused by a notifiable or infectious disease.

The litigation process can be a lengthy procedure and various difficulties can arise, depending on the conduct of the parties. Parties to a dispute are encouraged to set out their respective positions so they can identify, narrow and resolve their dispute. Usually, this means that parties will exchange correspondence and meet face to face - court proceedings should always be a last resort.

If the matter does proceed to court, inevitably, there will be a significant financial commitment from the policyholder. However, if you are successful, the insurer will most likely pay a significant portion of your costs.

The recovery process will be carried out pursuant to the Civil Procedure Rules (CPR), which are a set of guidelines for parties engaging in civil disputes. The Court will always interpret the rules so as to fulfil the overriding objective to deal with cases justly and at proportionate cost. Accordingly, the Court will take a dim view if either party attempts to delay or obstruct their opponent’s case and has the power to penalise the dissenting party on costs.

We understand that the recovery process can be a challenging time for you and your business, which is why we will deal with any issues promptly and professionally, keeping you informed at every step pursuant to the Myerson Promise.

In a standard policy, a key worker can be any individual within the company whose skills, knowledge or experience are integral to the businesses success.

There may be a specific definition in your policy, but, as above, we can review your policy and promptly advise you whether an employee is classed as a key worker.

Aside from our legal fees, there is likely to be counsel's charges, court fees and other payments that we have made on your behalf to third parties.

You will be primarily responsible for your legal costs, but if your claim is successful, you may be able to recover some of those costs from the other party.

Each claim is different, some claims can be settled in weeks, others can last for many months.

It is therefore crucial that we keep you informed at regular intervals and we will endeavour to recover sums owed to you as promptly as possible.

Damages are distinguishable from costs, which are the expenses incurred as a result of bringing a lawsuit and which the court may order the losing party to pay.

If judgment is entered in your favour, the insurer will be served with an order setting out the terms for payment of damages and costs.

Costs will either be subject to a “summary assessment” or a “detailed assessment”. A summary assessment takes place immediately following the end of the hearing and is usually conducted by the judge. Under this procedure, the deadline for payment is set out in CPR 44.7, which requires payment to be made within 14 days of the date of the judgment or order if it states the amount.

A detailed assessment under CPR 47 requires the judge to retire and carefully consider the costs incurred by the successful party before making an award at a later date. If a detailed assessment is made, payment must be made within 14 days of the date of the certificate which states the amount.

The court has the discretion to require payment on another date if it considers this to be appropriate.

If you are self-employed, your limited company may have the benefit of a business interruption policy. Depending on the nature of your self-employment and the value of your claim, it may be more cost-effective to make an application to the Financial Ombudsman, who can settle disputes between insurers and policyholders up to £350,000, as opposed to issuing proceedings under the CPR.

We can initially assess whether you meet the application criteria and provide initial advice regarding the likelihood of the Ombudsman’s decision, after which, we will assist you in every step of the recovery procedure.

At Myerson, we recognise that policyholders may need access to urgent funds to recover damages from insurers. In such circumstances, we can be retained pursuant to alternative fee arrangements, subject to each policyholder’s specific circumstances and the merits of their claim.