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Insights

17 September 2020

Business interruption insurance claims

At Charles Russell Speechlys, we understand that these are extremely difficult and challenging times for everyone and we are here to offer as much support as possible to our clients.

Business interruption insurance claims - What we can offer

We are advising a number of UK and international galleries as well as other art market participants regarding the challenges they face during these unprecedented times. Of particular importance to our clients is the need to increase income, save costs or raise funds. 

We have been advising clients on claims they may have against their insurers for business interruption losses. These are not easy claims to run and most insurers have to date refused cover. However, from the outset we did not think insurers were right to do so in every circumstance.

Our analysis was confirmed by the judgment handed down on 15 September 2020 in relation to the Financial Conduct Authority’s test case against several defendant insurers. The judgment assessed the degree of coverage provided by various sample insurance clauses in the context of the COVID-19 pandemic, all of which the insurers had denied provided coverage.

The High Court found against the insurers on most issues, and while the judgment’s effect will depend on the individual policy in question, policyholders are now generally in a much stronger position to pursue settlements from their insurers.

Consequently, we would be happy to help you recover any losses you have suffered as a result of the pandemic and we’re happy to do so without any upfront costs to our clients, using our alternative funding model FeesibleTM.

Funding options through FeesibleTM

FeesibleTM is a bespoke disputes funding product we have created to help our clients take some of their major concerns out of the equation. FeesibleTM is shaped by our understanding of the pressures disputes can cause, our experience and knowledge of the funding market and our strong relationships with funders and insurers.

Through FeesibleTM, we can offer a variety of ways that funding for a claim can be structured and risk can be managed between us.

How we can help

We have extensive experience with the insurance sector. Our work centres on “getting the deal done” whether that involves utilising insurance solutions to enable transactions to proceed or litigating to secure insurance recoveries.

We are experienced in pursuing and defending claims under a variety of global insurance programmes across multiple jurisdictions, including applications for negative declaratory relief, jurisdiction challenges, confidential Bermuda Form arbitrations and enforcement. We recognise that an insurance policy is an asset and will ensure that insurers meet their obligations when that asset is called upon. We find insurance coverage where others do not.

Working closely with our top ranked art and luxury team who are fully immersed in the art world, we understand its complexities and sensitivities and how clients need to navigate the challenges and opportunities presented. Our lawyers have wide expertise and unrivalled experience in representing clients in this arena.

We assist clients across the spectrum of the creative world from emerging and street artists through to governments, antiquities dealers and museums. Our lawyers are recognised for their long experience and accomplishment in this field and have been involved in many of the art world’s most important issues.

We have also been assisting clients in other sectors including retail, sport, luxury brands, restaurants, recruitment and landed estates. 

What next

Time is of the essence for these claims and so you need to act swiftly. There is nothing you need to do other than send us a copy of your insurance policy and any correspondence you have had regarding a claim with your insurer.

Upon receipt, we can advise whether you have a claim worth pursuing and if you do we will work with you to calculate the losses you’ve suffered.

In addition to insurance claims, we can also offer advice on contracts that may have been affected by COVID-19 (e.g. art fairs, internal suppliers such as cleaners and security), landlord and tenant issues and employment issues plus any other issues you are unexpectedly facing.

Get in touch today to see how we can help

Email: rudy.capildeo@crsblaw.com

Call: +44 (0)207 203 5164

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