COVID- 19 & Insurance – The Good, the Bad & the Ugly

114-clock Created with Sketch. Tuesday May 05 , 2020

UK Hospitality reports only 1% of insurance claims are paying out.

Almost all of us have at least one existing insurance policy. Whether you have bought a new house, a new car or booked a Summer holiday, insurance is an essential factor to consider.

We secure protection for our families and belongings both inside and outside of our home and business owners will have several policies in place to protect themselves, their employees and premises should the worst happen.

One thing we all have in common is that we pay our hard earned money and put our trust in the insurance company that when the unexpected happens and we have to make a claim, we will be looked after by our insurance company for the premiums we have paid.

However, since the recent global pandemic it seems our view on insurance has somewhat changed. Customers have taken to social media to express their frustration surrounding particular insurance companies and their refusal to pay claims.

One frequently used comment is ‘they look for the reason not to pay as opposed to the reason to pay’. Is this slowly becoming a reality? Or has this always been the case and it really is all about luck when making a claim on your policy?


COVID-19 and the insurance industry has not been a match made in heaven for consumers who thought they had cover and now find they don’t. The small print and insurance company interpretations are leading to court cases and legal challenges. A group of 200 businesses is already taking one insurance company to court.

Business Interruption Insurance anyone? COVID-19 has proved to be quite an interruption, but insurance companies don’t seem to agree.

Remember the Commercial Union slogan “we don’t make a drama out of a crisis”. It seems many of the insurance companies are doing just that.

Consumers may think in the future, what is the point of insurance when they have no intention of paying out?

Some insurance companies are claiming that if they had to pay out all the claims they would go out of business. That is irrelevant, if you have paid for cover then cover should be provided regardless of the insurance company’s financial position.

The ABI (Association of British Insurers) are being quite upbeat on behalf of the insurance industry citing how much they are supporting and paying out to affected businesses, but the stories making the headlines make for grim reading.

Are you one of those businesses who have had your claim rejected or someone who has purchased a flight or holiday and the insurance company has rejected your claim? Tell us your story, we are gathering data on the good, the bad and the ugly of the insurance industry. There has never been a more pressing need to understand those insurers who are stepping up and those that are not and which insurance companies you will or will not use in the future.

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