A growing group of angry hospitality businesses that individually failed with claims of business damages resulting from Covid-19 to date, are now planning collective legal action.
The group, called HIGA and legal advisers Mishcon de Reya, have said legal action will focus against two giants of the insurance world, Aviva and QBE. The focus follows from hundreds of complaints received from hospitality businesses to HIGA.
The HIGA website outlines a registration process open to hospitality businesses. It is still open, but only to policyholders insured by Aviva and QBE with specific policy wordings. There is a link on their website to a similar group claim against Hiscox that is already in progress.
Claims received to date are from hospitality businesses where major losses have been incurred through decisions by insurers to exclude disruption caused by coronavirus as part of their business interruption policies.
Failed Covid-19 business insurance – timelines
HIGA has called on hospitality businesses with policies from Aviva and QBE to join the group’s plans to make a legal claim by June 5. HIGA plans to file the claim by June 10.
Sonia Campbell, partner and head of the insurance disputes practice at Mishcon de Reya, said: “We were overwhelmed by the expressions of interest in bringing actions against insurers from within the hospitality industry.
“It demonstrates how hard-hit this sector has been as a result of the Government-enforced lockdown and how intransigent many in the insurance industry have been towards their policyholders.”
In anticipation of the court action, a spokesperson from Aviva said: “We support the FCA’s decision to bring greater clarity and certainty for customers and insurers on business interruption policies so valid claims can be paid as quickly as possible.
“We hope this approach will accelerate the determination of what are, in some instances, complex technical matters and give much needed certainty to British industry.
“Aviva’s standard terms and conditions for business interruption do not cover claims relating to the current pandemic.
“However, a small number of Aviva customers may have purchased cover through a broker or scheme that is not on Aviva’s standard terms and which may provide cover.”
Failed Covid-19 business insurance claimants join a hospitality collective
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