The Night Time Industries Association (NTIA) and Hiscox Action Group have combined forced to pressure insurer Hiscox to settle business interruption claims.
THE NTIA announced last week that it had appointed a barrister to lead its challenge against the insurer's flat refusal to accept the claims of businesses impacted by the Covid-19 crisis.
It later claimed that the insurer's underwriters had said it would "positively respond" to coronavirus claims, just days before the lockdown was announced.
MIchael Kill, chief executive of the NTIA said: "This alliance will ratchet up the pressure on Hiscox. These policies have clearly been triggered and we are determined to do everything we can to get Hiscox to pay out quickly and in full."
Mark Killick, of the Hiscox Action Group Steering Committee, added: "Hiscox's behaviour has been disgraceful and is threatening thousands of UK businesses. By working together with the NTIA, we hope to force Hiscox to do the right thing before it is too late for many of our members".
A spokesperson for Hiscox last week said: "We understand these are incredibly difficult times for businesses and we are paying claims that are covered by the policies we issue fairly and quickly. We review every case individually, and if any customer has concerns about the application of their policy, we encourage them to get in touch with us directly.
"Where the application of a policy is disputed, our focus is on helping to provide customers with greater certainty. A fair and fast resolution is in everybody's interests, which is why we will work with the UK insurance industry, our regulators and customers to seek an expedited resolution through the range of existing independent mechanisms."
The Financial Conduct Authority has said it will seek a court declaration to resolve uncertainty around whether businesses can claim under business interruption insurance cover for coronavirus losses.