Following the announcement that around 370,000 UK-based small businesses are to receive more than £1billion in Covid ‘Business Interruption’ compensation, Fletchers Solicitors’ founder and Chairman, Rob Fletcher hopes the insurance payouts can provide shoots of recovery for the region’s retail sector.
Many hard-working businesses in Southport will celebrate a Supreme Court ruling that will force insurers to pay out on previously disputed business interruption claims totalling £1.2bn.
In 2020, business interruption claims were made following a deluge of disruption left by the outbreak of Covid and central government restrictions. Last Summer, Judges then set specific parameters for businesses to claim following a Financial Conduct Authority (FCA) test case.
Since then, a High Court judgment announced in September 2020 has been widely supported within the local business community.
Rob Fletcher, Founder and Chairman of Southport’s long-standing Fletchers Solicitors, said: “In a landmark judgment the Supreme Court has given a beacon of hope for many small businesses in this dark time of Covid.
“Business interruption clauses are common in commercial insurance policies. When Covid hit, businesses tried to claim for loss of earnings but were refused by a large group of insurers who attempted to say that the unprecedented circumstances of Covid were not covered.
“The announcement will be very welcome news to many small businesses in Southport, particularly our retail sector where a great many shops have had to close.
“We can only hope that the insurance payouts will come in time to help save our high streets which have had a difficult enough time even before Covid.”
Olivia Gerrard, one of the law firm’s recently qualified solicitors, backs Rob’s optimism for the region’s future, but is wary further obstacles may come into play.
“The unanimous Supreme Court judgement has provided clarity in a time of uncertainty.
“Small businesses can take comfort in knowing that their business interruption insurance will provide indemnity and ultimately pay out for their losses during the pandemic. Whilst this is a ‘full victory’ for some, the virus has undoubtedly left some small businesses broken.
The question is, will this lifeline be enough to get small business back on their feet? Or will this mean further litigation? Watch this space.”
Rob Fletcher is the founder and current Chairman of Fletchers Solicitors.
Olivia Gerrard is a Solicitor at the same firm.
Established in 1987, Fletchers Solicitors is the largest medical negligence and personal injury practice in the UK that specialises in serious injury, medical negligence law and motorbike accidents; more recently expanding into data breach claims. The firm currently employs over 450 people.
Do you have any stories for Stand Up For Southport? Please message Andrew Brown via Facebook here or email me at: mediaandrewbrown@gmail.com
