Fenchurch Law has warned brokers to ensure their clients submit any outstanding COVID-19 business interruption (BI) claims before they become time-barred.
The limitation period for such claims is set to expire in March 2026, leaving businesses with less than a year to take action. The law firm urged brokers to review policies and ensure claims are filed promptly, as businesses failing to do so risk losing the opportunity to recover pandemic-related losses.
Since the onset of the pandemic, numerous legal battles have shaped the insurance landscape.
A landmark ruling in the Financial Conduct Authority (FCA) test case in January 2021 set an important precedent, clarifying the scope of BI policies and providing opportunities for businesses affected by government-mandated closures to seek compensation. This judgment has significantly expanded the potential for policyholders to claim for losses incurred during the early months of the pandemic.
In the Liberty Mutual Insurance v. Bath Racecourse case, the Court of Appeal confirmed that the ‘any one loss’ limits in composite policies should be applied separately to each policyholder, rather than collectively across all policyholders. This ruling provides additional clarity on how policies should be interpreted but also highlights the need for brokers to act swiftly as the March 2026 deadline looms.
Despite these developments, many businesses remain unaware of their rights or the potential for compensation.
Fenchurch Law managing partner Joanna Grant (pictured above) stressed the urgency for brokers to take action. “Though the pandemic was unprecedented, insurance policy wordings should be fair, proportionate and transparent, and we have found time and time again that this was not the case during the pandemic,” she said. “[W]e urge brokers start talking to clients now, long before the liability period runs out.”
