Trade association to challenge Hiscox over COVID-19 claims denials

The Night Time Industries Association (NTIA) will coordinate claims against Hiscox Insurance for its refusal to pay out on COVID-19 claims against its business interruption policies.

Michael Kill, CEO at NTIA, the UK-based trade association, said: “Night Time Economy businesses are being denied legitimate insurance claims, many claims are being disputed by insurers based on contrived arguments to avoid sharing the financial burden during the COVID-19 crisis.”

NTIA has instructed Philip Kolvin QC to advise on its members’ rights under their insurance policies. Hiscox was cited as one of the main providers of leisure sector policies, with the re/insurer having indicated such policies do not cover most losses associated with COVID-19.

Kolvin believes claimants who were insured by Hiscox against closure by public authorities that had to close their premises under the regulations have a good case against Hiscox.

Kill said: “We want to talk urgently to any businesses within the hospitality and leisure sector which have a policy with Hiscox and would like to join the current group of over 100 claimants to progress a legal case against the company.”

Kolvin warned NTIA members face “a clear and present danger that the industry will be decimated, that leisure businesses throughout the UK will go to the wall, that jobs and livelihoods will be lost, and that the cultural capacity of the nation will be depleted for years to come.”

He argued that insurance companies “know they are liable under their policies” and called on them to pay claims to their customers. “They should not be running for cover. They will never be forgiven for doing so,” he said.

Simon Mabb, managing director at NDML Insurance, said it is working with NTIA and Philip Kolvin QC to pursue claims for business interruption losses due to the COVID-19 lockdown.