A law firm is launching a series of group actions for hospitality businesses who have had business interruption claims declined.
The Covid-19 group actions being undertaken by Michelmores is targeting policies that contain wording such as "disease extension" and "non-damage property business interruption".
It has identified a number of insurers who it believes may be withholding compensation and is inviting operators who have had claims declined to come forward and join the action. The insurers are:
- Aviva (in particular Resilience policies)
- Hiscox/Geo Specialty
- NFU Mutual (in particular Commercial Select)
- RSA/New India Assurance
- Ecclesiastical (in particular Historic Britain Insurance)
Garbhan Shanks, head of Michelmores' policyholder insurance team, said: "The coronavirus pandemic has adversely affected numerous businesses across the United Kingdom. Some have specific policy clauses (such as non-damage property business interruption or disease extension wording) which should cover business interruption losses, yet the insurers who offered this cover are declining claims.
"We are considering launching a series of targeted group actions, with the aim of helping policyholders to receive the indemnity funds that they may be entitled to."
The structure of the action has not been established as yet, though Michelmores is currently acting for a group who are each contributing a share of the fee to facilitate economies of scale. It said that other actions could attract third-party funding, where a third party would make an investment in return for a slice of the damages.
Businesses interested can register their interest with the Michelmores team via email@example.com.