Covid-19 claims ‘must be paid’

HOPE FOR FIRMS IN INSURANCE FIGHT

SOME of the world’s biggest insurers wrongly rejected tens of thousands of claims from small firms plunged into crisis by the coronavirus pandemic, the High Court ruled.

The judgement could pave the way for businesses to finally receive payouts for lost trade when the national lockdown was ordered in late March.

It comes after some insurers tried to wriggle out of coughing up, arguing Covid-19 wasn’t covered.

City watchdog the Financial Conduct Authority brought an urgent test case against eight insurers, including Hiscox, RSA, QBE and Zurich, to clarify what policyholders could expect.

In a complex judgement the court backed policyholders in most, but not all, the issues raised.

The ruling directly impacts tens of thousands of firms whose claims, aims, as of June, had either been rejected d or put on hold. However, it also has implications ications for

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Waitrose products to Marks ks & Spencer had proved a hit.

The online supermarket said customers were ordering an extra five items per shop on average since the change happened on September 1.

The tie-up, which saw M&S replace eplace Waitrose’s long-standing deal, suffered ffered a rocky start with orders cancelled elled after demand outstripped supply. ply.

Budget fashion firm New Look k has avoided collapse after creditors itors and landlords yesterday backed da a rescue deal. up to 370,000 businesses with an extension to standard business interruption insurance.

Christopher Woolard, FCA interim chief executive, called the judgement a “si g ni f i c a nt st e p in resolving the uncertainty”.

Richard Leedham, partner at law firm Mishcon de Reya, which represents Hiscox customers who joined forces to form the Hiscox Action Group, said the outcome would “provide a lifeline for small businesses across the country”.

But Huw Evans, director general at the Association of British Insurers, said the ruling “divides evenly between insurers and policyholders”.

Hiscox said just under one third of its 34,000 UK business policies would now pay out, with a bill of around £100million. But the ruling could be appealed, which would delay fu funds getting to business custom customers that are already

on the brin brink of collapse.

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