The Night Time Industries Association’s (NTIA) claim against Hiscox Insurance has revealed new evidence that suggests the insurance company’s underwriters agreed cover for Covid-19 but negated claims once they came in.

The claims were coordinated against the insurance provider due to its refusal to pay out under its business interruption policy as a result of the Covid-19 pandemic.

CEO of the Night Time Industries Association, Michael Kill, said: “We continue to see frustration from policy holders across the sector, we have been approached by a substantial number of claimants for advice and support who have received communication from Hiscox denying their claims.

“We have found evidence that suggests even their own underwriters were discussing how the cover would positively respond only days before the lockdown happened, leading to clients renewing with them and not taking options of cheaper policies elsewhere.

“Hiscox have underestimated the response from the industry, and the claimant’s willingness to ensure that each disputed claim is challenged.

“While we focus on the campaign to challenge Hiscox Insurance on the disputed claims, we must also take account of the crisis that has created this situation and build towards working with the wider insurance industry to future proof cover for our Sector.”

Phillip Kolvin, QC, of Cornerstone Barristers, said: “Each policy turns on its own wording. Not all policies respond to the coronavirus. But where policies clearly apply, insurers should provide cover, not run for it. In some cases, the insurer’s strapline should read: ‘Insurance till you need it.’ That cannot be tolerated and will never be forgotten.”

MD of NDML Insurance, Simon Mabb, said: “NDML Insurance Brokers, specialist late night broker says they are continuing to support its customers where we are confident about the insurers liability to pay under their insurance policy.

“It is a continued source of frustration that having been quick to decline the initial claims submitted in late March/early April we are about to enter a new month and the insurers in question are now taking their time to conclude matters. Time sadly our customers don’t have the luxury of, stalling customers’ ability to seek justice in their hour of need.”