By Kirstin Ridley and Carolyn Cohn
LONDON, Jan 21 (Reuters) - Some of the world's biggest
insurers are bracing as a second wave of multi-million pound
lawsuits, brought by struggling British pubs, restaurants and
bakery chains over lockdown losses, starts hitting London's
courts next week.
Zurich, MS Amlin, Liberty Mutual,
Allianz and AXA are among those due in court
one year after Britain's Supreme Court ruled https://www.reuters.com/article/uk-britain-court-insurers-idUSKBN29K112
that many insurers had been wrong to deny thousands of
companies, battered by the COVID-19 pandemic, business
interruption payouts.
Insurers have since paid out 1.3 billion pounds ($1.8
billion), according to the Financial Conduct Authority. But the
ruling did not cover all policy wordings and, where it deemed
claims valid, some companies are now disputing payout levels.
Companies and insurers have been at loggerheads over whether
business interruption policies provide cover for COVID-related
losses since government lockdowns in March 2020 shuttered shops,
bars and restaurants.
Corbin & King, the owner of London's Wolseley and Delaunay
restaurants, starts offwith a High Court trial on Monday that
has been accelerated through the courts because of its interest
to other policyholders.
It is suing AXA for around 4.5 million pounds in a dispute
that hinges in part on the scope of "denial of access" cover,
designed to protect insured venues that are shut by public
authorities on health grounds.
AXA declined to comment. Corbin & King did not respond to a
request for comment.
Other businesses have potentially tens of millions of pounds
riding on the outcome of the case, said Mark Pring, partner at
law firm Reed Smith.
"We have clients sitting there who are very interested
because their wordings are either materially similar or
overlap," he said.
Three other companies are also taking on their insurers in
closely-watched disputes that focus in part on the aggregation
of losses: whether policies have been triggered multiple times
during the pandemic and qualify for multiple payments.
Slug and Lettuce owner Stonegate, Britain's largest pub
group, is bringing an 845 million pound claim against Zurich, MS
Amlin and Liberty Mutual, who insured 760 of its 4,500 venues.
A trial, which will also examine whether government support
payments can be deducted from claims, is scheduled for June.
The three insurers allege their liability is limited to 17.5
million pounds, of which 14.5 million has been paid, according
to court documents. They declined to comment on Friday.
Multi-million pound claims have also been filed by
sandwich-to-pasty chain Greggs against Zurich and by
Strada and Coppa Club owner Various Eateries against
Allianz.
Various Eateries and Allianz said in a joint statement they
were seeking a ruling on "a number of issues" left unresolved by
the Supreme Court. Greggs declined to comment.
($1 = 0.7372 pounds)
(Editing by Louise Heavens)