Covid-19 Business Interruption Cover
Evidence is emerging that business interruption insurance, which provides cover for extreme events, is providing little light at the end of the tunnel for leisure and hospitality businesses.
Some, such as restaurateur Raymond Blanc, have been furious at the rejection of their claims, on the basis that COVID-19 is not included in their list of covered disruption events and is therefore excluded.
But there may be hope of a lifeline for these businesses, including golf clubs, via a type of Funded Group Action.
This type of litigation is usually backed by specialist litigation insurers and is known as ATE (After the Event) Insurance. ATE is quite common for other large civil actions, as was the case with the banks after the 2008 financial crisis.
Guardian Legal Services have teamed up with a team of Lawyers including Barristers and a QC from leading Chambers in London to manage multiple claims and take the fight to the defendants.
The team has experienced a flood of enquiries from the hospitality industry, as more businesses experience rejection of their claims. We suspect that many
- Golf Clubs
will be finding themselves in a similar position and may be unaware of their options and we invite enquiries from them. There is no fee for making an enquiry.
Commencing litigation against a large corporation can be daunting and expensive especially after the Jackson reforms of 2014 which has stripped the average SME of the ability to pursue claims against big financial institutions, insurance companies or rich litigants, without risking the loss of a fair chunk of any financial award they may get if they win, let alone what they might stand to lose if they lost the case.
How To Take Action...
Paul Gilbert of Guardian Legal Services Ltd says: “These actions can be run partly on a ‘no win - no fee’ basis although there can be a cost, but the claimants’ costs are protected through ATE if they should lose the case and there is often strength in numbers”.
Anyone who seeks clarification on this matter can contact Paul Gilbert who is available to discuss the matter with them at no cost.