Rangers ten million claim for business interruption

Grigo Yossarian

Well-Known Member
It shows beyond doubt that our insurers have agreed it’s a covered risk.

So, the only matter still to be decided is the full extent of the claim and cover.

Liability has already been accepted by the insurers if they’ve paid out an initial amount.

Yes Ar.

We didn’t lose any Euro income last season, as VB mentioned, so there’s maybe an element of guesstimate from the journalist ?
 

last minute signing

Well-Known Member
I'd be flabbergasted if we had a policy with a coverage of £10m or anything near it. If we do I'd like to know the premium we pay.
I wouldn’t be surprised if we do have coverage around this level and the cost probably won’t be as much as you think vs not having it. Insurers probably viewed this scenario of being 1 in 10,000 for example, therefore having minimum impact on the policy cost.
 

Coza

Well-Known Member
So we’ve claimed for loss of earnings rightly so but obviously that ignores the cost of running Ibrox etc for a europa game. So if this is true we’re getting 100% revenue with 0% of the associated costs. Beautiful.

Hope it’s true but I suspect we won’t get the full claim.
 

dennyperkins

Well-Known Member
Don't think the crash barriers took out this insurance.
Be great for us to cash in on this.

I recall this being mentioned on here a couple of months ago that only Rangers and perhaps Hearts or Dundee had this kind of insurance?
Today just gets better and better.
B-) B-)B-)B-)B-)
 

Coisty09

Well-Known Member
Official Ticketer
A lot of indemnity cover runs January to December.
If it did happen to be the whole 12 months of last year then our Europa league qualification this season.
I have no evidence to support that speculation but it is quite common although you would probably think that a football club would go season to season.
In our case in recent years that would be July to June.
 

rupertdabear

Well-Known Member
Golf clubs and other sporting clubs would also have this insurance cover.
Maybe mate and maybe not. Unless the court have ruled otherwise it applies to only certain policies that had taken an extension of cover for pandemics .
The companies were trying to make the new disease case and as no one knew about it wasn't covered .Thats what the judgement was addressing as far as i know.
I have BI cover myself but it states in the terms ,only as result of interruption and a sucessful claim on the other terms of the policy ie the business being unable to operate due to fire, flooding or other damage or causes covered by the policy .
I had it looked into and its pretty clear, although thats not to say the courts haven't over ruled that but won't hold my breath on a payout .
 

supersonic

Well-Known Member
Official Ticketer

Rangers have a ten million claim in for business interruption of which a million already paid out. The ten million is for the loss of revenue from the Europa league games & group stages. This news means it will be paid out.
This is your opinion, it is not fact and we do not know if they will pay out for Europa league or not. I highly doubt it somehow.
 

Valley Bluenose

Well-Known Member
Surely this would have been mentioned at the AGM ?
They did say we’d had an initial payout and discussions were ongoing about further payments. I’m inclined to think if those further payments had the potential to reach the figures quoted then we’d have been a lot more upbeat about it. We’ve obviously more to come but speculation on the amount is nothing more than just that - speculation.

I’m a pessimist by nature though.:confused:
 

EndOfDays

Well-Known Member
Most of these policies all have disease exclusions as well... i think that was the main exclusion carriers were using on these claims wasn't it?
Lots of different policies with different wording but contagious diseases will all be excluded when policies renew.

The court found in favour of the policy holders pretty much across the board though.

The covers for most will have lowish limits as it was never taken out to cover something on this scale.
 

ChildOfGod

Well-Known Member
Probably bumped our premiums up this year but nevertheless we should renew imo

if an event such as covid starts in one year and runs on and on would it be fair to say Insurers in principle would allow cover to extend ?

wonder which EPL clubs have taken cover as there numbers could be many factors larger
 
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Alex

Well-Known Member
I’m sure certain claims will have a maximum amount per incident.

A £10m limit is very high. The maximum payout on my own business indemnity insurance is £2m.

Wimbledon/The LTA got a payout of around £110million. Sporting events and clubs are bound to get big payouts because of the disruption caused.
 

Mr. T.

Well-Known Member
I’m sure certain claims will have a maximum amount per incident.

A £10m limit is very high. The maximum payout on my own business indemnity insurance is £2m.
I’m not an expert on such things, but would premiums/maximum payout not be linked to the level of cover you wanted to pay for possibly dependent on the size and turnover of the business concerned?
 

Super Ally_71

New Member
Official Ticketer
I don't know the specifics of the RFC policy, but what the High Court ruling did was confirm that liability on certain policies (not all) would apply. The courts ruled that some policies would respond despite the wording's intentions not do so. Effectively getting the claim paid by default (from an insurers perspective).

Most BI polices will cover the policyholders losses for a predetermined period. (Typically 12 months although can be longer 2/3 years). The payout being the difference what the businees would have made but for the pandemic/lock down less what profit they actually made in that period. This is 23/03/20 to 22/03/21.

Put simply in real terms the business should not be financially any worse off with the exception of the excess.

The issue is if the lockdown and fans are unable to take their seats after the policy period expires.

Many insurers have already started to reword their policies so as to close this loophole, although specific policies can be aquired but suspect will be expensive.
 

big_blue

Well-Known Member
I’m not an expert on such things, but would premiums/maximum payout not be linked to the level of cover you wanted to pay for possibly dependent on the size and turnover of the business concerned?
Yes absolutely. My own level of cover is more than enough to cover me and the premium reflects that.

I wonder what the premium would be for a £10m payout or the £110m Wimbledon payout. It must be a six figure premium and worth every penny.
 

Valley Bluenose

Well-Known Member
Yes absolutely. My own level of cover is more than enough to cover me and the premium reflects that.

I wonder what the premium would be for a £10m payout or the £110m Wimbledon payout. It must be a six figure premium.
When the Wimbledon story broke it was disclosed their premium was £2m per annum. They'd been paying for decades - but will be thankful in the end.
 

Ibroxmassive

Well-Known Member
Wimbledon took out their policy after the original SARS outbreak, and it might have been a similar trigger for us.


Insurance Times said:
Ben Carey-Evans, insurance analyst at GlobalData, said Wimbledon has learned from the SARS outbreak.

“Wimbledon has shown it is one step ahead of most businesses by having insurance in place for current events,” he said. ”It has been paying around £1.5m per year in pandemic insurance since it took notice of the SARS outbreak in 2003.

“It has paid out roughly £25.5m over the 17-year period, and it is set to recover around £114m, making it a very sensible investment.”

According to data from GlobalData’s SportCal team, Wimbledon earns around $160m in media rights, $151m in sponsorship and around $52m in ticket sales annually.

It will save $38.7m on prize money, and more on staff wages, but this still represents a significant loss of income, despite the sizeable insurance pay-out. Insurance represents damage limitation for the competition, and it will find itself in a much stronger position than most other events in the world during this period.
 

Soldier1981

Moussa Dembele's Number 1 Fan
Good news, slightly off topic but these insurance companies that try to avoid paying should be made to pay treble severely sanctioned to deter them from doing similar with other policy holders.

They are happy enough to take people's money but when the people make a claim the insurers will try everything to avoid a pay out.
 
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