Ongoing Battle to Recover Business Interruption Insurance Cover

Last year there was great excitement when the initial rulings were released as to the interpretation of the business interruption insurance clauses in many policies held by operators.

As we stated at that time this part of the Covid 19 impact on the industry would not resolve easily nor quickly, with litigation likely to arise.

It is now reported that certain insurers are claiming that the policy cover for interruption losses is limited to a single event and will not cover a series of events-in other words the run of restrictions and lockdowns we have experienced over the last 2 years.

CG Restaurants and Bars are leading an action group to start legal proceedings. These will focus on recovering an indemnity for the multiple lockdowns that have occurred because of the pandemic.

Daniel Coffer, director of CG Restaurants and Bars, said

"The continued effect of the new Omicron variant only highlights the need for members of the hospitality sector to take action to recover the sums to which they are contractually entitled. Our claim alone is substantial, and there are others who no doubt have similar sized claims who need the protection that this class action will afford."

It is understood that a case against AXA on insurance cover is due to be heard at the end of the month, as the judgements start to be released operators may start to see some clarity on what is covered and consequently what can be claimed.