The Night Time Industries Association (NTIA), UKHospitality, and the British Beer and Pub Association (BBPA), say they all endorse the FCA action, which will see eight insurance firms take part in a High Court test case next month to decide whether their business interruption policies should pay out on claims related to the Coronavirus pandemic.
From a pool of 16 insurers, Arch Insurance, Argenta, Ecclesiastical, Hiscox, MS Amlin, QBE, RSA and Zurich, have all been selected to appear.
The three trade bodies say the case will lead to an effective resolution of the liability issues their members are currently facing, without any of the costs or risks involved in bringing their own action.
The associations have also been joined by NDML, leading brokers to the hospitality industry and Black and White Hospitality, whose legal director Rob Atkinson has co-ordinated a crowd-funded action group comprising a large number of policyholders.
Black and White Hospitality, whose legal director Rob Atkinson has co-ordinated a crowd-funded action group comprising a large number of policyholders, also welcomed the FCA's announcement; as did hospitality insurance specialists NDML.
“We are delighted to see that the FCA has taken on board the legitimate claims of hospitality businesses against their insurers," says Kate Nicholls, chief executive of UKHospitality.
"These businesses have been hit hard by the Coronavirus and had expected their insurance policies to cover them for forced closures. It is time that insurers played fair and stopped hiding behind technicalities.”