Hiscox must pay out on disputed business interruption policies

Following an announcement this morning from the UK High Court, Hiscox & QBE must pay out on their disputed business interruption policies – in what could represent a sum of more than £50m for unmet claims from the UK hospitality sector.

As previously reported by the drinks business, the pressure has been mounting on insurers to pay out valid claims from the UK hospitality sector for lost revenue during the lockdown, with a union announced in May to sue insurance provider Hiscox for unmet claims amounting to more than £50m.

Following months of hard work from the market leading hospitality broker NDML, and the Night Time Industries Association, alongside industry leading barristers and lawyers, this is the result the whole industry was hoping for, with both organisations celebrating today the positive result for 370,000 policyholders, highlighting the difference it will make to the survival of their businesses.

Michael Kill CEO of NTIA said:

“This verdict is just what we’ve been waiting for. The night-time economy has been one of the hardest hit by lockdown measures during the pandemic, and many businesses are grassroots, family owned venues, that are cultural cornerstones of towns and cities across the UK. The enforced lockdown since March has created unthinkable financial turmoil and stress for many business owners. This verdict gives some reassurance that these businesses will get the payments they deserve to help them survive this period.”

His sentiments were echoed by Simon Mabb, managing director of NDML:

“We’re so pleased that these months of hard work have paid off for our clients. This is the result we all knew was the right one from the beginning, and it’s frustrating that it’s taken so long to reach this point. But it’s reassuring to know that we can now give some certainty back to the venues and businesses that have had their lives put on hold for so long.”

With next steps still being finalised, it’s not yet clear exactly when businesses will see their claims paid, but this result means businesses can progress to the next stage and start planning for the future more secure in the knowledge that they’ll have the resources to survive.

While this is good news, there is likely to be an appeal brought by insurers where the High Court has sided with the FCA, so businesses should be aware that there are still challenges ahead, but they will not be facing them alone.

Both NTIA and the NDML will be holding webinars for affected clients and members with technical claims specialists and industry leading barrister Philip Kolvin QC, to keep affected businesses updated with all the developments of the case and next steps for claimants.

These webinars are taking place on Wednesday 16 and Thursday 17 September 2020.

Read more

PRESSURE MOUNTS ON INSURERS AS LEGAL BATTLES BEGIN OVER LOCKDOWN CLAIMS FROM UK ON-TRADE

VAGABOND WINES DENIED ‘VALID’ INSURANCE CLAIM FOR COVID LOSSES

Leave your reply

Most Recent Stories

Amuse-bouches: The latest restaurant news bites

In restaurant news: a High Court hospitality case against the government gets expedited, UK restaurant chain Six by Nico is accused of staff mistreatment, and chef Skye Gyngell opens a farm shop.  

New online grower Champagne retailer and wine club targets growth

Sip Champagnes, a new online retailer and wine club championing grower and small-scale Champagne producers, wants to target the UK on-trade and expand into Europe.

HK bar industry agrees to government proposal in exchange for reopening

The Hong Kong bar industry has agreed to accept the proposal from the government to ask patrons to keep their masks on and use a straw to drink alcohol if it will mean venues can reopen. 

Italian restaurant targeted by US sanctions in case of mistaken identity

An Italian restaurant found itself at the mercy of one of former US President Donald Trump's last sanctions after it was wrongly identified as being linked to a Venezuelan oil trafficker. 

California Wine Institute launches food and wine competition

The California Wine Institute has launched a new competition this month called Cook with California, which aims to show how well wines from the US state pair with British produce. 

Most Recent Stories

Amuse-bouches: The latest restaurant news bites

In restaurant news: a High Court hospitality case against the government gets expedited, UK restaurant chain Six by Nico is accused of staff mistreatment, and chef Skye Gyngell opens a farm shop.  

New online grower Champagne retailer and wine club targets growth

Sip Champagnes, a new online retailer and wine club championing grower and small-scale Champagne producers, wants to target the UK on-trade and expand into Europe.

HK bar industry agrees to government proposal in exchange for reopening

The Hong Kong bar industry has agreed to accept the proposal from the government to ask patrons to keep their masks on and use a straw to drink alcohol if it will mean venues can reopen. 

Italian restaurant targeted by US sanctions in case of mistaken identity

An Italian restaurant found itself at the mercy of one of former US President Donald Trump's last sanctions after it was wrongly identified as being linked to a Venezuelan oil trafficker. 

California Wine Institute launches food and wine competition

The California Wine Institute has launched a new competition this month called Cook with California, which aims to show how well wines from the US state pair with British produce.