The British Beer & Pub Association (BBPA), UKHospitality (UKH) and the Night Time Industries Association (NTIA) all reacted positively to the Supreme Court’s decision on business interruption cover.
Insurers must pay small businesses for lockdown losses, court rules
The Supreme Court decision could affect almost 400,000 small firms with business interruption policies
15 January 2021 • 6:24pm
Hundreds of thousands of struggling businesses hit by coronavirus restrictions including bars, restaurants and nail salons could be entitled to a payout following a landmark court ruling.
In a closely watched £1.2bn legal battle that began last year, cash-strapped businesses with business interruption insurance policies have been demanding payouts for heavy losses suffered when they were forced to shut during the first lockdown.
However, the Supreme Court has now substantially allowed an appeal brought by the Financial Conduct Authority on behalf of the companies, potentially affecting up to 370,000 firms holding 700 types of policies issued by 60 insurers.