Update to Members on Business Interruption – February 2021

Dear Member

Thank you for bearing with us as we engaged with the Mutual’s Supporting Insurers, MS Amlin, regarding the Business Interruption cover following the FCA Test case and the subsequent decision of the Supreme Court.  I am very pleased to confirm that we have reached agreement with MSA.  Following a constructive discussion with them, we can confirm that the cover wording provided by AIM will provide cover for Business Interruption caused as a result of the lockdown commencing in March 2020, subject to the criteria shown below.

The AIM cover wording requires there to have been a case of the virus “at the premises” which has resulted in restrictions on the use of the premises, on the order or advice of the Government, for the policy to provide cover.  Therefore, we confirm that there will be cover in the following circumstances:-

The first lockdown period 26th March 2020 to 4th July 2020

  1. You must be able to demonstrate a case of Covid-19 at your premises (being the premises as detailed in your policy) between the 5th and 26th March 2020. The 5th March is the date that Covid-19 was classified as a Notifiable Disease and the 26th March was the date the Regulations confirmed the national lockdown.
  2. If the criteria in 1. above is met, you are able to submit a claim for Business Interruption suffered as a result of the Lockdown from 26 March.  That Lockdown ended on 4 July when most businesses were able to re-open.   Some businesses were, of course, able to re-open before 4 July.  In either case your loss will be calculated accordingly and the indemnity payable will reflect the period of closure and the effect of re-opening although, of course, the overall indemnity will reflect losses suffered throughout the relevant Period of Indemnity. 
  3. If you had a case of Covid-19 at the premises after the 26th March and before the 4th July 2020, this case cannot be said to have caused the lockdown as it was already in force.

 The second lockdown period 5th November to 29th December 2020 and third lockdown January 2021 to March 2021

  1. In respect of the second lockdown from the 5th November 2020 to the 29th December 2020, and subsequent third lockdown period from January 2021 to March 2021, if you had a case of Covid-19 at your premises as specified in your policy schedule, in sufficient proximity to the start of the second and third lockdown periods, then there may be cover for losses suffered in the second and third lockdown periods.

 Ongoing restrictions on Residential Centres

We fully appreciate that some of our Members have been unable to reopen or resume residential visits and residential activities due to ongoing restrictions by the Department for Education.   There may be cover beyond the 4th July 2020 for such situations, while those restrictions continue.

 Exclusion Clause from 26th March 2020

MSA placed an exclusion clause on the BI wording relating to Covid-19 from the 26th March 2020.  Therefore any policies which renewed and any new policies starting after the 26th March 2020 contain the exclusion and cover would not be available.  Therefore you may have cover for the first but not for any subsequent lockdown periods.


If you consider that you are able to meet the above criteria, we invite you to submit details of your claim to [email protected].  Due to the likely volume of the claims and their complexity we will be instructing Loss Adjusters to handle the claims for AIM.  Further details as to the evidence you will need to show for a case being at your premises and confirmation of what financial documentation is required will be sent out to you.

I hope that for so many of our Members who have been through such a very difficult year that this provides some comfort.




Andrew Gardiner

Chair of the AIM Board

February 2021