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Legal challenge to Covid19 Business Interruption Claims launched

A crowdfunding appeal has been set up to mount a legal challenge against the insurance sector’s refusal to pay out to hospitality businesses forced to close as a result of coronavirus.

Organised by Rob Atkinson, a solicitor and in-house counsel for Black and White Hospitality which owns the franchise rights for Marco Pierre White restaurants, the campaign follows a review of numerous policies within the hospitality sector by a leading city law firm. It believes many could potentially cover the losses currently being experienced and therefore says they should be challenged.

The campaign, which has the backing of UKHospitality, asks for a minimum donation of £200 for which the specific wording of a policy will be reviewed and general advice issued. Once the advice is provided, businesses can consider it alongside their own policy to judge the chances of a successful challenge.

The crowdfunding page has reached over £1,300 of its £25,000 target with support coming from businesses including DoubleTree Hilton and Best Western. All surplus funds remaining at the end of the campaign will be released to charity.

Rob Atkinson comments: “As someone firmly entrenched in our amazing UK hospitality industry, I have seen first hand the devastation almost every business has suffered. Revenues reduced to zero overnight. We have been badly let down by our insurers. Legal action started some weeks ago to challenge this in the USA. Various groups have now formed in the UK with similar intentions. This crowdfund aims to lead the fight for our hospitality industry and add to the pressure currently being applied by Government, the FCA, UK Hospitality and various PR campaigns.”

He adds: “The hospitality industry is tight knit as recent shows of strength and camaraderie in the face of adversity have shown. By working together, we can help to secure financial support that has been paid for and is deserved.”

For further information and to join to the crowdfunding appeal, click here.

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