Watch Webinar on Covid-19 Business Interruption Claims

Unmasking Covid-19 Business Interruption Insurance Claims in Insolvent Estates: The Untapped Asset

Manolete Partners Plc, Stewarts Law and R3 held a very successful online webinar on 11 February. You can view a recording of the webinar via YouTube here.

James Breese partner at Stewarts Law LLP and Caleb Bompas, Associate Director at Manolete Partners Plc talked through the following themes:

• The latest developments in Covid-19 business interruption insurance litigation.
• The claims that may still be available but unresolved and the sectors they are typically found in.
• Important practical considerations for Insolvency Practitioners looking to unlock value in business interruption claims.
• Key lessons from a real-life case study undertaken by Manolete and Stewarts that resulted in a major recovery for all stakeholders.

Over 300 insolvency professionals registered and all those who attended then received copies of the slides from the day.

Caleb Bompas, Manolete Associate Director (London) said: “This is an important issue for IPs and other insolvency professionals because Covid-19 was a significant factor in many insolvencies. Many companies (especially in retail, hospitality and leisure, even real estate) had business interruption insurance policies in place but either the company claims were incorrectly declined at the time or the policy was forgotten about.

“In the intervening time, a number of test cases have gone through the Courts producing policyholder friendly judgments. Covid-19 Business Interruption Insurances claims are an asset under s.436(1) Insolvency Act 1986 that can and should be realised. They could hold substantial unrealised value for insolvent estates.

“FCA analysis of the insurance industry’s data held that in early 2023, they estimated there were over 370,000 potentially affected policyholders, of which approximately only 43,000 had been paid. At the time nearly £1.5bn had been paid. It is thought that there are many more claims out there which can be realised.

“IPs should however be aware that businesses have six years from the date of loss to pursue a claim against their insurer, meaning claims will start to become time-barred in March 2026. IPs should act now on their existing cases and keep an eye out for claims when taking on new matters”.

If you were unable to attend the webinar and wish to receive a copy of the relevant slides please contact: Jeremy@manolete-partners.com.