Liverpool business lobby group Downtown in Business is offering firms a no-win no-fee legal route to challenge insurers over rejected COVID-19 business interruption claims. Tony McDonough reports
Liverpool-based business lobby group Downtown in Business (DIB) is to join forces with legal experts to help businesses fight insurance companies who have rejected COVID-related claims.
In March, LBN reported that Lawyers at Provenio Litigation in Liverpool are to represent small businesses who were denied insurance payouts on COVID-19 losses in a multi-million pound class action lawsuit.
Now Downtown, which also operates in other locations in the North West and the West Midlands, is also joining the fight. It says too many insurance companies are refusing to pay out on business interruption claims for COVID-19 losses despite a court ruling.
In January this year, the UK Supreme Court backed policyholders in an urgent test case to determine whether businesses hit by the COVID-19 pandemic should receive pay-outs under their business interruption policies.
In a case brought by the Financial Conduct Authority, the court ruled against the insurance industry on a number of key points. But it doesn’t address all possible issues. You can read full details on the judgement here.
DIB says a number of insurance companies are still refusing to meet their obligations. And many owners of small and medium-sized businesses who are entitled to compensation have failed to put in a claim. Now it is teaming up with BIC Management which has specialist solicitors across the country supporting businesses from a diverse range of sectors with business interruption claims.
“I am disappointed that businesses who have paid their insurance premiums in good faith for years are struggling to get the support they need and are entitled to from their brokers,” said DIB chief executive Frank McKenna.
“We have established a partnership with leading legal experts and advisors on the issue of business interruption claims, to work with companies on a no win-no fee basis. We have already started working with some of our members in the hospitality sector. A claim north of £6m has been made for one of them.
“But it is not just those in the hospitality industry who will be entitled to compensation. Many other sectors have been impacted by the huge disruption we have experienced during the past 12 months. I would urge anyone who has suffered a loss in their business due to COVID restrictions to contact us immediately. You literally have nothing to lose.”
If you want help with your claim, email insurance@downtowninbusiness.com quoting BIC CLAIM.