Claim rejected
The insurer says the event did not trigger the business interruption section or falls within an exclusion.
Business interruption claim support
Business Interruption Insurance Claim Disputes
If your business interruption claim has been rejected, delayed or calculated too low, we can examine the policy trigger, insurer’s reasoning, financial evidence and loss calculation before explaining the strongest realistic route forward.
Commercial Claim Review
Free Initial Review
Litigation Support
Specialist Barrister Access
Where interruption claims go wrong
A covered incident can still lead to a disputed business interruption claim
A disagreement may begin with the event that triggered cover or arise later when the insurer, loss adjuster and business calculate the financial effect. The coverage question and the value of the loss need to be tested separately.
Policy trigger disputed
There is disagreement about insured damage, prevention of access, utilities, suppliers, customers or another extension.
Loss calculated too low
The settlement does not appear to reflect the insured reduction in turnover, gross profit or other covered loss.
Indemnity period restricted
The insurer argues that the interruption ended earlier than the business’s operational or financial evidence indicates.
Trends adjustment overstated
Historic performance, market conditions or later events are used to reduce the expected results of the business.
Claim delayed or stalled
Repeated information requests, changing calculations or unresolved expert questions prevent a clear decision or payment.
Cover first, calculation second
A strong review separates policy response from financial quantum
A detailed spreadsheet cannot resolve an incorrect coverage decision, and an accepted policy trigger does not prove that the proposed settlement is accurate. Both parts of the claim require their own evidence and reasoning.
Does the policy respond?
The starting point is the complete policy: the interruption section, relevant extension, definitions, exclusions, conditions, schedule and endorsements. These are then applied to the actual cause and circumstances.
- Insured damage and material-damage provisos
- Prevention or denial of access
- Utilities, suppliers and customer extensions
- Exclusions, conditions, warranties and notification
What loss does the wording insure?
Once cover is established, the policy’s formula is applied to reliable accounting and operational evidence. The aim is to model the insured position the business would probably have achieved without the incident.
- Turnover, revenue or gross-profit definitions
- Indemnity period and recovery timeline
- Trends, variations and special circumstances
- Increased costs, savings, sub-limits and deductibles
Testing the insurer’s calculation
Six areas that can materially change a business interruption settlement
Small changes to assumptions can produce a substantial difference. Each adjustment should be tied to the policy formula and supported by evidence, rather than inserted simply because it reduces the claim.
Standard turnover
The benchmark period and seasonal pattern should fairly represent the business before the incident.
Gross-profit basis
The policy definition may differ from the gross profit shown in management or statutory accounts.
Trends and circumstances
Growth, decline, contracts, capacity and market conditions may affect the results expected without the loss.
Indemnity period
The relevant period may extend beyond physical reinstatement while turnover or operations continue to recover.
Increased cost of working
Reasonable expenditure used to maintain operations or reduce lost turnover must be analysed under the wording.
Savings and limits
Saved costs, deductibles, sub-limits, declared values and underinsurance can all affect the final figure.
Building an evidence-led claim
What we examine in a disputed interruption claim
The right evidence depends on the insurer’s position. A focused review links the policy, incident, operational disruption and financial calculation so that each disputed assumption can be identified and tested.
Policy and placement documents
Schedule, wording, endorsements, proposal, declared values, renewal material and relevant broker correspondence.
Cause and operational disruption
Incident reports, expert evidence, closure dates, damaged assets, dependencies, mitigation steps and recovery records.
Financial and trading evidence
Accounts, management information, VAT returns, sales data, budgets, forecasts, contracts, payroll and cost records.
Insurer and adjuster calculations
Reservation or rejection letters, information requests, adjuster reports, calculation models, assumptions and settlement offers.
Looking beyond the headline figure
The interruption loss may involve more than reduced turnover
A covered incident can affect sales, margins, staffing, premises, suppliers, production and customer relationships at the same time. The claim should allocate each element to the correct policy section without omission or duplication.
The purpose is not to exaggerate the loss. It is to ensure the calculation follows the actual wording, uses defensible counterfactual assumptions and recognises reasonable action taken to protect the business.
A proportionate route forward
From initial review to a structured business interruption challenge
FCA claims-handling rules require insurers to handle claims promptly and fairly, provide reasonable guidance and progress information, not unreasonably reject claims and settle promptly once settlement terms are agreed.
Review cover and calculation
We identify the policy trigger, disputed assumptions, missing evidence and the parts of the financial model that materially affect value.
Present the evidence-led case
The next step may involve focused information, revised calculations, structured correspondence, negotiation or a formal complaint.
Escalate where appropriate
Depending on eligibility and circumstances, options may include the Financial Ombudsman Service, litigation support or a specialist barrister.
Business interruption claims
Frequently asked questions
Practical answers about rejected, delayed and underpaid business interruption insurance claims.
What does business interruption insurance cover?
Cover depends on the policy. It commonly responds to an insured reduction in turnover or gross profit following defined insured damage, while some policies include extensions for access, utilities, suppliers, customers or other events.
Can a rejected business interruption claim be challenged?
Potentially. The stated reason should be compared with the complete wording, the actual cause and circumstances of the interruption and the available factual, technical and financial evidence.
How is a business interruption insurance loss calculated?
The method depends on the policy formula. It may use turnover or revenue, an insured gross-profit rate, an indemnity period, trends and variations, increased costs, savings, deductibles and policy limits.
Is insurance gross profit the same as accounting gross profit?
Not necessarily. A policy may define gross profit using a specific formula that does not match the figure presented in statutory or management accounts. The definition must be applied to the underlying financial data.
What is the indemnity period?
Broadly, it is the period during which the insured interruption loss is measured, subject to the policy definition and maximum period. Its end is not always the same as the date physical repairs are completed.
What is a trends clause?
Trends or other-circumstances wording adjusts the benchmark so the calculation better reflects the results the business would probably have achieved without the insured incident. The adjustment should be supported by evidence.
Can increased costs of working be claimed?
Potentially, where the policy covers reasonable expenditure incurred to maintain operations or avoid or reduce an insured loss. The wording may contain economic tests, sub-limits and separate additional-increased-cost provisions.
What if the insurer says the business is underinsured?
The declared value, sum insured, maximum indemnity period, valuation basis and any average clause should be checked. It may also be relevant to examine how the figures were calculated and what advice was provided.
Can the Financial Ombudsman Service consider the dispute?
Some businesses, charities and trusts may be eligible. Eligibility, complaint-stage requirements, award limits and time limits depend on the organisation and circumstances, so they should be checked for the particular case.
What should we provide for the free initial review?
Start with the policy schedule and wording, the insurer’s latest decision or calculation, key adjuster or expert reports and the principal financial material supporting the claimed interruption loss.