Check your policy! Insurance ruling boost for eventprofs
A high court ruling on business interruption insurance policies suggests Covid-19 claims could be paid in most cases if policies had pandemic or notifiable disease clauses.
The Meetings Industry Association (mia) has welcomed the ruling. Jane Longhurst, mia chief executive added: “We know from our recent industry survey that 92 per cent of respondents stated that their financial losses to date have not been covered by their insurance policy, so this test case is promising news for the many who have suffered immeasurable losses due to the ramifications of the pandemic.
“In light of today’s landmark ruling that examined 21 policy wordings used by 16 insurers, we are advising the sector to revisit their existing, as well as any previously outstanding policies, where the policyholder may deem themselves eligible to make a claim under pandemic or notifiable disease clauses.
“As highlighted by Christopher Woolard, interim chief executive of the Financial Conduct Authority (FCA), insurers must now reflect on previous clarity provided irrespective of any possible appeals, while also communicating the next steps on how they can progress claims.
“While the FCA is expecting this activity to be conducted in a rapid manner, we are advising the sector to directly contact their insurer as soon as possible to seek further explanation and investigation into any potential claims.”
The ruling comes just a day after mia was able to secure clarification on how the recently imposed ‘rule of six’ gathering restriction would affect business events.
Business events for up to 30 people can still take place where they follow the pre-existing Covid-Secure guidelines, it has been confirmed.
While welcoming the clarification, Longhurst condemned the government’s message, saying that confusion over the rule of six regulations had led to direct event cancellations and loss of revenue for businesses already struggling. She also called on the government to fund meeting and event venues to help them survive.
Published Date: 15/09/2020