Action group launched to support businesses struggling to secure insurance payouts

By James McAllister

- Last updated on GMT

Hospitality Insurance Group Action launched to support businesses struggling to secure Coronavirus interruption insurance payouts

Related tags: Insurance, Restaurant, Legal challenge, coronavirus

A new industry-wide action group has launched to support hospitality businesses who are wrestling with insurers to secure payouts under their business interruption policies.

The ‘Hospitality Insurance Group Action’ (HIGA) is open to all companies within the sector that have been forced to close as a result of the Coronavirus crisis, and are now struggling to claim on their insurance.

Earlier this week a survey by trade body UKHospitality revealed that less than 1% of businesses in the sector​ had successfully managed to claim on their interruption insurance so far.

Litigation firm Mishcon has agreed to advise HIGA on the parameters of bringing a collective group action against a range of insurers. 

It has secured external funding to cover the policy review exercise, and is working with Philip Edey QC of Twenty Essex Chambers.

"Hospitality sector businesses, large and small, have been particularly hard hit by the Government-enforced closure during this pandemic, and desperately need to mitigate their losses,” says Sonia Campbell, partner and head of the insurance disputes team at Mishcon.

“In times of crisis they expect their insurance to respond. Yet I am hearing time and time again that insurers are either stone-walling, unfairly limiting or simply point-blank refusing to pay out under business interruption policies. 

“This strikes us as something that is open to challenge. I look forward to assisting all members of HIGA in exploring the possibility of a group claim. There may well be some light at the end of this industry’s very dark tunnel." 

For more details, click here​.

Related topics: Business

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