Do you know of anyone who has had their Covid-19 Loss of Profits claim rejected?

Do you believe you have a valid Business Interruption claim due to Covid-19?

If yes, then please read this, or register your interest here.

Context: At Garden Route Insurance Brokers (Pty) Ltd (GRIB) we have been working tirelessly for our Business Interruption claimants, having put together exceptionally strong arguments to the Insurers (please read our latest industry insight piece here for further context).

In a nutshell, a bone of contention exists revolving around an extension of Business Interruption cover relating to contagious or infectious notifiable diseases. Currently, there’s a massive push back from insurers – outright rejecting claims or stating that there is no cover, seemingly buying time and kicking the proverbial can down the road. The same response is repeatedly regurgitated with no end in sight and requires strategic closure. 

We however are strongly of the opinion that the proximate cause will be the nexus of the debate ahead plus the unambiguous policy wording that exists in certain insurer’s policy wordings. Our argument remains that the losses were indeed caused by the event Covid-19, a contagious and infectious notifiable disease, and as a result a national lockdown occurred. 

For us as professionals, the interpretation of the wording is clear and unambiguous. None of the words of the extensions are susceptible to more than one meaning. Furthermore, the cardinal rule of all interpretation of insurance contracts is that the intention of the parties should prevail as appears from the ordinary grammatical meaning of the words used. 

Urgency: We need to act now, together. As mentioned above we await the insurers next move, however the writing is on the wall – this is going to be a battle.

CLAIMS PROCESS

Strategic rationale: We believe that if we present a unified front and approach the insurance companies in a coordinated manner we will substantially bolster our case by making access to professional advice affordable to all and have strength in numbers to expedite the process with the Insurers, Ombud or Courts.

Caution: In insurance, the onus is on the claimant to formulate and justify any claim. Business Interruption claims are hugely complex notwithstanding the intricate legal nuances that come with the unprecedented Covid-19 outbreak. For this reason, we encourage you not to engage in written or verbal communication with your insurer without professional advice. You may inadvertently invalidate your claim through the unintentional misunderstanding of terminology among other factors. The average claimant does not have the skills to receive a favorable settlement outcome.

At Garden Route Insurance Brokers, we have a team of professionals and seasoned Business Interruption experts ready to assist you. Please register your interest here. We are fully digital and ready to engage with you wherever you are.  

 * This article is provided for informational purposes only and should not be construed as legal or financial advice.