The Meetings Industry Association (mia) has welcomed this week’s high court ruling on business interruption insurance policies, which could see thousands of policyholders paid out on previous claims for COVID-19 business interruption losses.
Jane Longhurst, chief executive of the Meetings Industry Association said: “Following months of uncertainty, we are extremely pleased about the outcome of today’s business interruption insurance case and hope that organisations will be able to secure any overdue compensation as soon as possible.
“Having worked closely, early in the pandemic, with Mishcon de Reya – legal representatives of the Financial Conduct Authority (FCA) and Hiscox Action Group – to develop our dedicated COVID-19 contract clause for venues, we have followed the case closely and are optimistic that this will provide a lifeline for many organisations who’s claims have been unjustifiably rejected to date.
“As part of our ongoing surveillance of the events sector and the impact of COVID-19, we are acutely aware of the dismay from many organisations whose valid claims had been unexpectedly turned away. From research conducted in Q3 2020, just 8% of respondents had been supported by their insurer, so this is welcome news for the many who have suffered immeasurable losses due to the ramifications of the pandemic.
“As has been well-documented, the industry has suffered immeasurable revenue losses, which in consequence has had a direct correlation with distressing redundancy levels and even company liquidation. We therefore hope that today’s outcome will provide many organisations with reassurance that vital, fully justified and due claims will be honoured and subsequently support them in their recovery.
“There remain some details left to interpret, and we hope that further clarity will be published by the FCA in due course to provide policyholders with reassurance that their legitimate claims will now be rightly honoured.
“While we expect this activity will be conducted in an urgent manner as insurers begin to outline any revisions to their claims and payment processes, we are advising the sector to directly contact their insurer as soon as possible to seek further explanation and investigation into any potential claims.”