Rising Commercial Insurance Disputes: What It Means for UK Businesses

reaching the High Court in England and Wales. Over the past decade, cases involving contested business insurance claims have risen by 180%, highlighting a growing challenge for companies relying on insurance protection when they need it most.

A System Under Strain

Since the introduction of the Insurance Act 2015, the goal was to create greater clarity and fairness in how claims are handled. However, the data suggests that many businesses are still facing uncertainty - and in some cases, outright disputes - when making claims.

For many organisations, this means:

• Delays in claim settlements

• Increased likelihood of disputes with insurers

• Greater financial uncertainty during already challenging situations
  

In high-value claims especially, disputes are becoming more common, with some insurers reportedly using litigation as part of the negotiation process rather than resolving claims promptly.

Why Are Disputes Increasing?

Several factors are contributing to this upward trend:

1. Complex Disclosure RequirementsUnder the Insurance Act, businesses must make a “fair presentation of risk” when taking out cover. This means fully disclosing all relevant information. If this isn’t done correctly, insurers may later challenge claims.

2. Lack of Clear GuidanceMany policyholders are unaware of their obligations under the legislation. At the same time, not all brokers provide sufficient guidance on compliance - leaving businesses exposed.

3. External PressuresEvents such as the COVID-19 pandemic and geopolitical instability have increased the number of claims, particularly where policies were tested under unusual circumstances.

The Real Risk for Businesses

For SMEs, the implications can be severe. Insurance is designed to protect against low-probability but high-impact events - such as major liability claims or operational disruption. If a claim is delayed or denied, the financial consequences can be devastating.

Put simply: the moment you need your insurance most is often when disputes arise.

The Importance of Getting It Right

At VistaWL, we believe businesses deserve clarity, transparency, and confidence in their insurance cover. The current landscape makes it more important than ever to:

• Ensure your policy accurately reflects your risks

• Fully comply with disclosure requirements

• Work with advisors who actively support you before and during a claim
  

How VistaNW Supports Your Business

We go beyond simply placing insurance. Our approach is built around protecting your business when it matters most:

• Clear Risk Assessment – Helping you understand and present your risks properly

• Policy Transparency – Ensuring you know exactly what you’re covered for

• Claims Advocacy – Supporting you throughout the claims process to achieve fair outcomes
  

Final Thoughts

The rise in commercial insurance disputes is a clear signal that businesses need stronger support and better guidance. Insurance should provide peace of mind - not uncertainty.

If you’re unsure whether your current cover would stand up when tested, now is the time to review it.