Insurer claims government grant counts against loss of income

mobilejo

Insurers are not in the business of betterment, unless the policy was sold to specifically include it.

The fact that the money has come from the public purse and will reduce the insurers liability is true - however is it relevant?

Technically, it isn't. If your policy is drafted as I expect it to be, the insurer is responsible for any loss of profit actually suffered, not potentially suffered. Potentially, you could have lost £50k, but if the Government contributed £5k to reduce that loss, then your actual loss is £45k. At the end of it all, you are simply meant to be no better or worse off than if the insured risk had not happened.

If the insurer paid out the full £50k, but you also got £5k from the Government, then you are actually £5k better off, and as I say, insurers are under no duty to see you better off than if the insured risk did not take place.