Specialist late night leisure business insurance broker NDML said it has secured more than £5.2m of Covid-19 Business Interruption claims from Hiscox for 72 claimants, delivering an average settlement of almost £73,000 per claimant.
The broker, which worked pro bono alongside the Night Time Industries Association (NTIA) and 11KBW’s Philip Kolvin QC, has gained the settlement from Hiscox for its clients involved in the Financial Conduct Authority’s (FCA) business interruption insurance test case.
The group action lawsuit saw the financial regulator seek legal clarity on whether insurers were obligated to pay out on business interruption claims related to the pandemic.
The FCA’s case against eight insurers was launched in June 2020 with the aim of clarifying whether 21 policy wordings, affecting potentially 700 types of policies, 60 insurers, 370,000 policyholders and up to £7.4bn insurance claims, covered disruption and government-ordered closures to curb the virus.
In September, the High Court ruled that insurers Hiscox & QBE must pay out disputed business interruption policies to policy holders in the events industry, which include live music venues, clubs, pubs and bars across the UK. The decision was upheld by the Court in January.
NDML MD Simon Mabb said, “I’m incredibly proud of the team effort that brought us to where we are today. From our in-house claims specialists, to Michael Kill and the NTIA team, to the invaluable efforts contributed by Philip Kolvin. The hard work has paid off, and I’m really pleased to see our policyholders receiving some of the highest business interruption settlements following Covid-19, thanks to the trust they placed in us from the very start. We’re now all looking forward to seeing the industry get fully back on its feet and forge a path to recovery.”