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Our previous article, stated that we waiting for a formal statement from the Covéa Insurance Plc (Covéa) regarding their interpretation of the wording post the Financial Conduct Authority (FCA) Test case.  As expected, an Appeal was launched and as a result, matters have been delayed.  However, the date for the Appeal hearing has been set for the 16.11.20 and this is expected to provide further clarity on the situation.  It is unclear whether the Appeal will provide the final solution that we all want but it will definitely, move matters forward.

In the meantime, many of our valued Policyholders continue to have queries over how the policy responds, can a claim be made or they simply wish to follow up a claim already notified to Balens/Covéa. The following aims to provide clarity on the situation:

Business Protection policyholders with Loss of Income insurance claims already submitted

There are several scenarios that may apply to our Policyholders:

Scenario one – A loss of income claim has been submitted and the reasons stated for the closure has been cited as “following Government advice” or “Social distancing”

  • Covéa have made it clear that, if any Policyholder has closed their business as a result of Government advice or due to social distancing rules only, there is no cover provided by the Loss of income section of the policy. The FCA judgement has no bearing on this decision and therefore, Covéa will not be considering claims.   Any policyholder that has confirmed the reason for interruption and/or interference of the business, due to the above, will be written to directly by Covéa, confirming the position.

Scenario two – A loss of income claim has been submitted and the reason stated is “an outbreak of a notifiable/contagious disease at the premises”

  • Covéa has stated that each claim will be considered on its merits and be subject to the information provided.  They will correspond directly with all affected Policyholders and provide guidance on the information required.  Please note, that the Appeal hearing may dictate the extent of information required to support a valid claim and whether the current situation/interpretation of policy cover changes.

Scenario three - A loss of income claim has been submitted but the reason for the loss is interruption/Interference is “unknown”,

  • Covéa will correspond with you directly acknowledging the claim and requesting additional information to consider the matter further. Covéa will correspond with you directly.

Claims Procedure for new notifications

Email claims@balens.co.uk and provide details of your name, address, and policy details (if possible). Provide as much evidence as possible about the potential claim that you wish to submit.  Covéa will evaluate the information and clarify directly with you, what is needed in order to consider matters further.

We would like to clarify that our dedicated Claims Department, will be copied in on all correspondence sent to our Policyholders and will be available to support you at all times, during the process.

Please be aware that in all scenarios mentioned above, the FCA test case appeal will be the driving force behind all future decisions made on policy cover and information required.  Naturally, we will provide appropriate updates, when we know more.

We fully understand that some Policyholders may wish to wait until the Appeal Hearing has been heard before deciding what to do regarding submitting a claim.   This is completely understandable and will not affect your rights, should you wish to submit a claim at a later date.  We have obtained confirmation from Covéa, that for this unique situation, there is no specific time period for registering a claim.  However, once the Appeal Hearing is held and Covéa’s decision made, it would be expected that any policyholders wishing to submit a claim must do so, within a reasonable timeframe.

Bridge Babtac Policyholders

Our article of the 18.09.20 stated that Insurers will not be considering claims for Loss of Income under this policy and explained the reasons why.  A formal statement is expected from them next week and will be posted here for review.

Conclusion

The above points clarify the latest stance taken by Covéa over policy cover and claims processes.  Balens are in constant contact with Covéa to ensure we have a co-ordinated approach to the situation and we have put in place, the best possible processes, to support our valued Policyholders.  We will continue to monitor the FCA test case appeal and provide a full update, when appropriate.

We hope that you find this article useful but if you have further queries or questions, please contact us accordingly.