"Thousands of hospitality businesses risk losing their right to Covid-related insurance compensation unless the Financial Conduct Authority (FCA) intervenes to extend a fast-approaching claims deadline, industry leaders have warned. In an open letter to the regulator, disputes firm Stewarts, alongside major hospitality trade bodies representing more than 155,000 businesses, has called on the FCA to require insurers to extend the business interruption (BI) claims deadline by two years."
"Most Covid BI policies in England and Wales are due to expire in March next year under standard six-year limitation rules. These policies were designed to support businesses forced to close during the pandemic, allowing companies to borrow up to £5 million through participating banks. However, Stewarts estimates that fewer than 50,000 claims have been accepted by insurers from an estimated 370,000 policies that could potentially qualify."
Thousands of hospitality businesses face losing entitlement to Covid-related business interruption insurance compensation unless insurers extend the claims deadline. Disputes firm Stewarts and major hospitality trade bodies representing more than 155,000 businesses have asked the FCA to require a two-year extension to BI claim deadlines. Most Covid BI policies in England and Wales expire in March next year under six-year limitation rules. Fewer than 50,000 claims have been accepted out of an estimated 370,000 potentially qualifying policies. Unresolved claims risk becoming time-barred, prompting legal action from firms that can afford litigation and placing strain on courts and public resources.
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