Covid-19 recovery
2020 may seem like a distant memory but its impact on small businesses remains all too real. For many, the Covid-19 pandemic was a devastating blow – layoffs, lost customers and fractured relationships became the harsh reality. This unprecedented event brought countless small businesses to their knees and many are still struggling to recover.
One way of recovering from this damaging event is to take advantage of the business interruption insurance that you bought and paid for, to support you for just such a situation. While insurance companies have prepared for these claims, they aren’t exactly rushing to inform you that the Covid-19 event is claimable.
The hardest hit are small businesses, particularly in hospitality and retail. They’re grappling with a new reality where consumer behaviour has dramatically shifted from pre-Covid norms. Large companies and multi-nationals were given a hand-out and that meant the impact to them and their staff was minimal. Industries like airlines and supermarkets have bounced back fully but many small hospitality and retail establishments are still fighting to survive and continuing to go to the wall.
Leveraging your business interruption insurance could be a crucial step towards recovery. Don’t let the opportunity slip away, it’s time to claim what you’re entitled to and support the recovery of your business.
Key impacts
The COVID-19 pandemic significantly affected Australian businesses, reshaping their operations
and financial stability, with these impacts extending into current time. With retail, travel and hospitality
the hardest hit, many businesses are still trying to recover.
It it estimated that cafes, restaurants, and catering companies collectively lost around $4 billion.
An estimated 1.8 million people were working reduced or no hours for economic reasons during the height of the pandemic.
The total Australian retail market is estimated to have decreased by 3.2% in 2020, wiping off approximately $17.0 billion.
Our process
Lodging your Covid claim is as easy as 1, 2, 3! Once we have worked out, based on your policy information and geographic location, that you have a claim, we can manage and finalise your claim in 3 easy steps on a no win no fee basis – keeping you informed every step of the way.
1. Preparation
WorldClaim Partners collaborates with you and your accountant or bookkeeper to compile, sort and analyse your information for claim lodgement, making sure that it is complete and properly formatted.
2. Lodgement
With your signed approval, we lodge the claim on your behalf, handling all negotiations and pushbacks with the insurance company and their representatives to expedite full payment as quickly as possible.
3. Settlement
WorldClaim Partners relentlessly pursues the claim settlement, arranging for deposit of the funds into a trust account and transferring the net amount to you after deducting the agreed fees with your approval.
Why should I claim?
The question is, why should you NOT claim?
We often hear stories of small businesses not putting in claims against the insurance policies that they pay good money for. Why? The reason you pay insurance is to get protection from the consequences of events that are out of our control.
The COVID-19 pandemic significantly impacted businesses worldwide, especially SMEs. Many SMEs faced disruptions due to lockdowns, reduced customer footfall, supply chain issues and other challenges. Business interruption insurance can play a crucial role in helping SMEs weather these difficulties.
Financial Support & Stability
Income Replacement: Business interruption insurance provides income replacement when a business is forced to close temporarily due to unforeseen events. For SMEs, this financial support can be a lifeline, allowing them to cover day-to-day operating expenses and overhead costs even when their revenue stream is disrupted.
Stability: Claiming business interruption costs ensures stability during uncertain times. SMEs can continue paying salaries, rent, utilities, and other essential bills, preventing financial strain and potential insolvency.
Coverage for Losses
Pandemic-Related Losses: The pandemic led to widespread closures, supply chain disruptions, and reduced demand. Business interruption insurance policies may cover losses arising from COVID-19-related closures, contingent on policy terms and conditions.
Test Cases and Clarity: Australian courts have reviewed ‘test cases’ to determine whether insurance policies cover pandemic-related losses. SMEs should engage with WorldClaim Partners to understand if their policies apply to COVID-19 disruptions. Collecting evidence will facilitate the claims process later.
Evidence Preparation
Collecting Evidence: SMEs anticipating a claim should start collecting evidence promptly. This evidence includes trading statements, profit and loss accounts, payroll documents, and receipts of additional costs. Insurers will likely compare the financial situation during the pandemic with a normal year.
Timeliness: Gathering evidence while it’s readily available streamlines the claims process. SMEs should consult WorldClaim Partners to help compile all necessary documentation.
Insurer Expectations
Utmost Good Faith: Insurers are expected to handle claims in line with their legal duty of utmost good faith. Recent judgments emphasize fairness, clarity, and timely communication. SMEs can hold insurers accountable to community expectations.
Test Case Outcomes
Patience Required: Insurers generally wait for test case outcomes before deciding on claims. Given the complexity of pandemic-related losses, this process may take several months.
Time Limit Flexibility: Insurers have agreed not to enforce time limits for claim submission or seek to avoid liability due to insolvency during this waiting period.
For SMEs navigating the challenges of COVID-19, claiming business interruption costs can provide much-needed financial relief and stability.
Engaging with brokers, collecting evidence and understanding policy terms are essential steps toward securing the advantages offered by business interruption insurance.
Start your claim today
Let us help you get your business back on track.
