Business Secretary Jonathan Reynolds is pushing for insurance firms to speed up claims payouts for businesses impacted by recent riots in UK cities. He emphasised that delays could lead to bankruptcy, worsening the already tough economic climate caused by the pandemic. Reynolds believes insurers must support local businesses during these troubled times.
Insurance companies are being urged to streamline the payout process, with a message sent to the Association of British Insurers (ABI) highlighting the need for faster compensation. Prompt payouts are seen as crucial for business survival, with many hit hard by recent events.
The communication also suggests providing business owners with regular updates to alleviate stress throughout the claims procedure. It encourages collaboration between all stakeholders, including the insurance industry, government, and businesses themselves, for the benefit of the UK economy.
The ABI responded by assuring their commitment to working together with stakeholders and ensuring timely compensation.
Accelerating post-riot insurance compensations in UK
They also promised to engage in thorough investigation to prevent fraudulent claims, and to regularly update on recovery operations.
Reynolds pointed out that many small business owners are uninformed about the support available post-riots. He emphasised that this lack of awareness has left numerous businesses struggling to recover, thus slowing down the overall economic recovery.
Direct Line, a leading insurance provider, stated that most of its commercial policies cover damage from social disorder, including riots. It further recommended early claims submission to expedite the process.
In places like Northern Ireland, where policies might not cover malicious acts, businesses can seek compensation from the Department of Justice or under the Riot Compensation Act. Reynolds stressed the importance of businesses in these regions understanding their insurance coverage and the available government financial aid.
If businesses find the claim process slow, they can register a complaint through their insurer or contact the Financial Ombudsman Service. Alternatively, they could seek legal representation or engage claim support companies for larger, more complex claims. As a last resort, grievances can be taken to an independent tribunal or court.
