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Covid-19 and Business Interruption Insurance - 13th April 2020 - Click for larger version Covid-19 and Business Interruption Insurance - 13th April 2020

If yours is one of the many businesses negatively impacted by Covid-19, then you should check your insurance cover - including business interruption insurance.

Your policies may cover your business against losses being suffered as a result of the current pandemic.

Your policy might, for example, cover you against damages caused by "an occurence of any human infection or contagious disease".

Macdonald Henderson can help review your policies and provide a view in terms of the scope of your policies, in the conext of the particular circumstances and losses affecting your business.

The press have now reported numerous instances of insurance companies rejecting, out of hand, seemingly legitimate claims under such policies - and Macdonald Henderson can also assist with options to hold insurers to account and enforce policy terms.

The financial ombudsman has jurisdiction to review decisions of insurers and in 'normal' times that would be a feasible option.

Right now, however - given the urgency to your businesses, and the effect of the pandemic on the capacity and speed of the ombudsman service - the Courts may be the only practical option.

The Scottish Courts are also dealing only with exceptional business, but (depending on your particular circumstances) the Courts might be persuaded that a claim to enforce the protection that your business ought to be, contractually, afforded is one of those exceptions.

Third-party litigation funding (just as it sounds, third -party funds will in certain circumstances provide funding, and other facilities, to allow businesses and individuals to pursue Court action) was already a growing phenomenon in Scotland, and funders might be prepared to play a part.

Macdonald Henderson have worked, and have relationships, with a range of funders.

Please contact Michael Hankinson ( or Alan McKee ( to discuss.

In the meantime, we sincerely hope that you, family and colleagues are staying safe and well.

Last updated: 4.52pm, Monday 13th April 2020

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