The Group is going after insurer Hiscox over its refusal to pay BI claims the group members believe to have been triggered by coronavirus pandemic. A number of brokers are supporting the work of the Hiscox Action Group according to its founder Mark Killick of Mediazoo.
Two groups representing about 500 businesses which have insurance policies with Hiscox have joined forces to pursue legal action against the insurer in a row over coronavirus payouts. The Night Time Industries Association (NTIA), which acts for more than 100 pubs, bars and nightclubs, has teamed up with the Hiscox Action Group, representing a wide range of firms in different sectors, to share information and pool resources in their dispute with Hiscox.
Daniel Duckett, owner of the Lazy Claire patisserie in Belfast, was hoping for an insurance payout of up to 100,000 pounds ($123,460.00) to cover losses during the coronavirus lockdown. Now he fears for the future as he battles for the compensation.
A row between Hiscox and some of its business customers has intensified after angry policyholders hired a leading law firm in preparation to launch legal action against the insurer. Mishcon de Reya has been retained by a group of more than 200 small companies in dispute with Hiscox over business interruption policies they purchased that have failed to pay out amid the coronavirus pandemic.
LONDON (Reuters) – Hundreds of British businesses, shuttered by a government lockdown to curb the coronavirus pandemic, have appointed lawyers to take on insurer Hiscox (), saying its refusal to compensate them for losses was putting their future at risk.
A member of the legal community listed a number of tactics he believes insurers will use to avoid paying out on business interruption claims for Covid-19 Insurance companies refusing to pay out on business interruption claims filed due to Covid-19 are “looking down the barrel” at legal action, according to a law firm.
The Sunday Times
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The restaurant empire led by Raymond Blanc has enlisted lawyers after being denied a payout by the insurer Hiscox. Blanc, chef patron at Brasserie Bar Co, has had to close all 37 of his pubs and restaurants due to Covid-19.
Get the latest on coronavirus. Sign up to the Daily Brief for news, explainers, how-tos, opinion and more. Small businesses across the UK have been “abandoned” by their insurers amid the coronavirus outbreak, with owners left facing an uncertain future.
A Northampton businessman has become the figurehead of a campaign to get insurers to pay out to companies affected by the coronavirus lockdown. The Pinnacle Climbing and Caving Centre managing director Simon Ager started by complaining about his insurance company, Hiscox, refusing to cover his losses.
Companies show their true colours in a crisis. So why would insurers be any different? They’ve long been the small print kings, turning up some clause buried in a policy document to avoid paying out. Fancy leaving the keys inside on a hook six feet from the front door.
A leading insurer faces mounting pressure to pay out on claims linked to the coronavirus pandemic after the City watchdog fired a warning shot at the industry over its treatment of small businesses.
Insurance Business Magazine
Bermuda-headquartered specialist global insurer Hiscox has broken its silence after hitting the headlines recently over its business interruption (BI) policies. Hiscox, however, did not address any specific coronavirus-related claim. Neither did the firm comment on the looming lawsuit it faces against the Hiscox Action Group, which was set up by London-based creative communications agency Media Zoo after its BI claim was rejected.
We would like to correct the information in the above article that states that there is looming legal action. At present we have not decided on any legal action against Hiscox Insurance. Our approach is through the media and the relevant oversight bodies.
Statement from Media Zoo in Response to FCA Letter
Business Matters Magazine
The Financial Conduct Authority has written to the chief executives of insurers to tell them that when it is clear that they have to pay out on a “business interruption” policy “it is important that claims are assessed and settled quickly”.
FCA Open Letter to Insurers
Businessman Simon Ager says his company, the Pinnacle Climbing Centre in Northampton, is at risk of being bankrupted because his insurer is refusing to cover losses as a result of the coronavirus lockdown. He is one of a number of business owners who have said they might take legal action against insurers Hiscox, which has said it will not pay business interruption claims resulting from the outbreak.
Hiscox Insurance has been the subject of increasing criticism following its refusal to pay out on a series of apparently valid COVID 19 claims. A letter has been sent to the Secretary of State for Business, Alok Sharma, urging him to investigate “as a matter of urgency.”
FTSE 250 insurer Hiscox faces the threat of legal action from business customers after the £3bn giant refused to pay out over disruption caused by the coronavirus.
Insurer Hiscox Ltd. has turned down a claim by U.K.-based communications agency Media Zoo Ltd., which has asserted that it is insured against coronavirus-related incidents and cancellations, C&IT reported. Media Zoo spent £13,425 ($16,530) for the insurance that included business interruption cover of income up to £5.3 million.