Many businesses, particularly in the hospitality and leisure sector hold business interruption insurance, under which they are insured for the losses and costs arising as a consequence of an event which gives rise to business interruption – claims in the past have typically involved damage to business property.
Businesses who have this type of insurance are looking to make claims under these policies because of the adverse impact of COVID-19 however a number of those with such policies have been denied a claim by their insurers.
The Financial Times reports of a number of businesses forming class action groups against the likes of Hiscox, AXA, RSA and Zurich and the Financial Conduct Authority (“FCA”) are going to seek determination from the Court as to whether or not some policies should pay out.
Whilst the FCA declaration will not result in the determination of all claims under such policies, it is hoped that the Court will be able to provide clarity against some of the contractual uncertainties which will be welcomed by both insurers and insured alike.
We have been supporting clients in respect of questions relating to the wording of policies and are pleased that our involvement has resulted in their claims being progressed. We are happy to share some points for you to consider when making your applications:
For further information, or support please do not hesitate to contact us.