Mishcon de Reya, the law firm that represented the Hiscox Action Group, could persue legal action against twelve new insurers following its Business Interruption insurance victory in the UK High Court.
Based on the sample of policy wordings presented by the FCA, the court decided that most, but not all, of the disease clauses provide cover for losses connected to COVID-19.
The court also ruled that the so-called “resilience” wording adopted by RSA, Aviva and others should respond to losses relating to the pandemic.
Mishcon says the same wording is adopted and underwritten by at least a dozen insurers and is now talking to policyholders across the country who are insured under this policy wording with different insurers.
The twelve insurers are Allianz, AIG, Aspen, Aviva, Axa, Chubb, Liberty, MS Amlin, Protector, RSA, QBE, and Zurich.
“Given the Court’s judgment on the Resilience wording, we believe that Aviva and RSA were wrong not to pay their policyholders’ claims, and it follows that the other insurers who have insured policyholders using the very same policy wording must also be wrong not to pay Covid-19 claims for business interruption,” said Sonia Campbell, a Mishcon de Reya partner and insurance specialist.
“We are actively considering a group action against all of these insurers to force them to honour their obligations.”
