A leading insurance lawyer has warned the effects of the business interruption insurance crisis during covid is still being felt.

As the British Insurance Brokers’ Association’s (Biba) annual conference in Manchester began, Jonathan Edwards partner, head of insurance & risk at law firm HCR said there are growing number of commercial insureds that are asking solicitors to check their insurance policies to  ensure they have been sold the correct cover.

He told emerging risks: “The business interruption issues and the subsequent court case have put a focus on the need for greater transparency for the Financial Services Authority.

“They are certainty set to take a closer look, and that has arisen from the business interruption disputes during the Covid pandemic.”

He added: “It has created a  mistrust of the market for many businesses, and it is trying to claw its way back.”

Edward said as a result of the ongoing concerns for insurers there are increasing number of clients who are asked his law firm for support.

“We are being asked to undertake due diligence on policies before the clients will make the purchase. They want to have the confidence that the policy will do what it meant to do in the event of a major loss.

“It is evidence that businesses are still concerned that the policies are not going to respond that they will; ask for are advice.”

He said: “Insurers should not be declining a claim due to an exemption. There are currently a lot of reason as to what we are being instructed, and we need to work in a solution.

“The view from policyholders is that it is far easier to get the insurer to review the policy before there is a claim.

“The FCA is keen to ensure that the customer is treated fairly. They are looking to ensure  transparency, customer duty, and value.”

It means that brokers will be at the heart of any solution given the trust that is placed in them by the client and the same will be case should things go wrong.

“We will speak to clients, and we will ask if they have read the policy and all too often, they will say no as they trust the broker and their advice,” Edwards continued. “We will ask the policyholder what keeps them up at night.

“There may be a wide range of cover in what could a generic policy, but we ask what the real concerns are, what are their biggest worries and what do they absolutely need to have covered by the policy.

“The FCA want to know the policyholder is getting the right cover for them and their specific needs.”