Recent court ruling opens the door for insurance claims even if previous claims have been denied, says broker
HOSPITALITY operators across Scotland who had Covid business interruption claims rejected are being encouraged to get in touch with an insurance broker in Yorkshire – who claims there may still be hope.
A significant number of operators had claims rejected in the wake of the Covid lockdowns, but a test case brought by the Financial Conduct Authority (FCA) has led to a raft of legal claims in recent years.
While these cases have taken years to work their way through the courts and clarify what can and cannot be claimed for, a recent ruling by the Court of Appeal may have opened the doors for licensees and business owners to receive compensation – even if a previous claim was denied.
Previous issues have revolved around policy wording, specifically policies referencing disease ‘at the premises’.
In September of 2024, the Court of Appeal ruled in favour of the lead claimant in an ‘at the premises’ case – London International Exhibition Centre – siding with the company against its insurance provider. In December, the Court threw out an appeal from insurance companies.
This ruling, says Yorkshire broker Sector Associates, has opened the door for further compensation.
Steven Swift, director at Sector Associates, said: “We see this as a significant win for policyholders and welcome the court’s decision. The claims landscape continues to evolve and we remain committed to helping clients in the leisure and hospitality sector.”
But there’s a catch. In Scotland, businesses only have five years to take legal action against an insurer. As the first Covid lockdown happened on 23rd March, 2020, that means Scottish businesses looking for compensation for that period only have a few weeks left to take action (the English statute of limitations is longer – six years, rather than five).
To that end, Sector Associates is offering a free review of hospitality businesses’ insurance policies and is working with legal firm Fenchurch Law on a class action case to help businesses previously denied compensation.
Interested licensees can contact Jamie Jenkinson with details of their business interruption policies at jamie@sectoria.co.uk by 20th March, 2025.