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Sizable number of UK firms could file business interruption claims due to Brexit

Sizable number of UK firms could file business interruption claims due to Brexit | Insurance Business

Sizable number of UK firms could file business interruption claims due to Brexit

One in five organisations in the UK could make business interruption claims linked to a disorderly exit from the European Union, according to new research.

A study from research firm Mactavish revealed that 22% of senior executives and managers at British firms believe that there is a strong chance their organisations will make business interruption insurance claims linked to damages and losses worsened by a disorderly Brexit over the next 12 months.

Read more: Are MGAs prepared for a no-deal Brexit?

However, Mactavish warned that that there is high risk of these claims being rejected because many of these organisations may not have informed their insurers of these risks, which they are required to do by law. The study found that only 25% of those who believe they are facing Brexit-related risks say their insurers have been informed of these. 

“Our findings show that many businesses are facing significant risks from a disorderly Brexit, and that many have not prepared for this properly or adequately informed their insurers of these,” said Bruce Hepburn, chief executive officer of Mactavish. “All of this creates several insurance related challenges and it can be difficult to know what they are covered for. Organisations need to review their existing cover to ensure it is adequate.”