A law firm has asked Allianz insurance policy holders that operated in hospitality during the Covid-19 pandemic to join them in pursuing a group action business interruption claim.

The proposed action comes after Corbin & King, now named the Wolseley Hospitality Group, won a multi-million-pound High Court battle against insurer Axa for Covid-19 business interruption losses in February.

The restaurant group had argued that it should receive business interruption cover from Axa under a ‘non-damage denial of access’ clause, a type of insurance that protects companies from being closed by a statutory body in response to a danger within a one-mile radius. It is now perceived that similar action could be brought against Allianz.

Axa argued that the clause did not cover losses stemming from a nationwide pandemic, but the judge ruled in Corbin & King’s favour.

As we are well familiar with by now, the Coronavirus and subsequent lockdowns were unprecendented situations, and current legislation of the time reflected this. A lot of businesses were hit hard by enforced closure during Covid, with many having to close and the repercussions still being felt now in the industry. It is not unlikely to see big High Court cases like this one becoming more common as questions are asked of insurers and policies further inspected.

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