0370 270 6000

UK businesses set to face a wave of Covid-19 related insurance claims

22 January 2021

Thousands of UK businesses are bracing themselves for a surge in coronavirus (Covid-19) litigation.

According to research for Gallagher, the global risk management and insurance brokerage, the survey of 200 CMCs, 1,000 senior business decision-makers, and 2,000 UK workers showed that seven in 10 (70%) have already had claims registered. The research also predicted a 40% rise in litigation compared to previous years due to Covid-19 with three – quarters (76%) of companies say the real impact is likely to be felt from the spring and into summer.

Kevin Lawson, insurance lawyer at Browne Jacobson, said:

“It is a complex insurance landscape at the moment where we expect the key claims drivers to be employment claims driven by those working from home with inadequate work equipment, training and IT challenges causing injury claims for stress with potential employment claims for bullying, harassment and constructive dismissal. There are also likely to be EL claims for eyesight risks using VDU equipment and repetitive strain injury claims from inappropriate home working environment set ups. Some businesses, such as those operating in a care home or health setting, are particularly vulnerable to Covid transmission risks.

“On the flip side, we will see a significant reduction in motor claims and possibly in manufacturing claims as production lines reduce workloads through Covid lockdowns as well as Brexit supply issues.

“The advice for businesses is carry out ongoing risk assessments and put suitable actions in place to mitigate developing risks in accordance with government advice.”

Focus on...

Legal updates

Court of Appeal confirms exclusive English jurisdiction clause in excess liability policies in Canadian pipeline dispute

On 10 June 2022 the Court of Appeal upheld an anti-suit injunction granted in favour of insurers by Mr Justice Jacobs in September 2021 restraining proceedings from being brought in Canada and enforcing the exclusive English jurisdiction clause in excess liability policies.

View

Press releases

Browne Jacobson launches innovative legal and compliance solution for insurance intermediaries

With the fast pace of legal and regulatory changes, Browne Jacobson is launching its ‘In-house for intermediaries’ service for brokers and MGAs.

View

Press releases

Browne Jacobson wins Inclusion & Diversity Award at the National Insurance Awards 2022

Insurance law firm Browne Jacobson has won the Inclusion & Diversity Award at the National Insurance Awards 2022. The National Insurance Awards are judged by an independent panel of experts and celebrate excellence in the sector by highlighting the very best in general insurance provision and management.

View

Legal updates

Should the UK Financial Conduct Authority bring "competitiveness" back into its regulatory agenda?

Earlier this year, the government recommended that the Financial Conduct Authority (FCA) bring "competitiveness" back into its regulatory agenda. In a letter to the FCA, the government stated that it wanted the UK to be "globally competitive" while encouraging the FCA to "promote competition" in financial services.

View