Hiscox Insurance makes initial settlement offers to business interruption policyholders
Hiscox was one of eight insurance firms to feature in the test case, which was first brought by the FCA last year to determine whether their business interruption policies should pay out on claims related to the Coronavirus.
The case eventually went before the Supreme Court, which found considerably in favour of policyholders in its judgement handed down last month.
A pro bono joint campaign between NDML, the Night Time Industries Association (NTIA) and Philip Kolvin QC from barristers' chambers 11KBW confirmed that policyholders it represents had now received initial settlement offers from Hiscox.
“Finally, we have heard from Hiscox Insurance with regard to the initial settlement offers for NDML and NTIA policyholders," says Michael Kill, CEO of the NTIA.
"This has been a long journey which has seen many casualties, but we are pleased to finally announce that the FCA Supreme Court Case is starting to bear fruit for some of the hardest hit businesses during the pandemic."
The campaign says it will continue to represent other policyholders with policy wording highlighted within the Supreme Court case, and have requested clarity from the FCA and the Court on the absolute outcome with a list of business interruption policies that react to the case allowing policy holders to claim.
This is expected in the coming weeks.
"Sadly, not all brokers were up for the fight that was needed to get what our clients deserve," says Simon Mabb, managing director of NDML (part of the Romero Group).
"This has been a very challenging situation for our clients and also the insurance industry trying to navigate this crisis, but keeping the lines of communication with clients, the FCA and Hiscox open has enabled us to get these settlements finally moving."
Earlier this month BigHospitality was told thata large number of insurers are continuing to 'sit on their hands' over business interruption claims, leaving many operators stuck in limbo as they try to secure payouts.
"These payments are welcome but overdue and would not have come at all without the efforts of the FCA, NTIA and NDML who achieved this result without costing policy holders anything," says Philip Kolvin QC.
"A better insurance scheme needs to be found. Small businesses shut down by a pandemic should not find their survival dependent on a Kafkaesque struggle in linguistics with insurance behemoths and their smart lawyers."
