Law firm Hugh James is urging business owners to review their Covid-19 business interruption (BI) insurance position and, where appropriate, challenge decisions that saw valid claims denied or delayed.
During the pandemic, many businesses were left out of pocket when their BI policies did not pay out. Hugh James has led the way in challenging those outcomes, supporting hundreds of clients, especially in the hospitality and leisure sectors, to pursue the compensation they were entitled to under their policies.
Erich Kurtz, Partner in the Financial Mis-selling team at Hugh James, said:
“We continue to see businesses that were told their policies did not respond to Covid-19 losses, when in fact there are strong grounds to recover substantial sums. With the March 2026 deadline approaching, it’s vital to reassess your position now. If your claim was rejected, delayed, or under-paid, you may still have a viable route to compensation, but time is running short.”
One business which has benefited from making a claim was a bar based in Aberystwyth. Hugh James represented Why Not Bar & Lounge which won a significant Court of Appeal case for £1.5 million for losses incurred during the Covid-19 lockdowns. The ruling confirmed the bar was entitled to payouts under their insurance policy, which included a business interruption clause and was a landmark victory for others in the hospitality industry, said Hugh James.
Hugh James is recommending any business with a BI policy that did not pay out pandemic-related interruption or restrictions should consider a review. It said that businesses which received a rejection or significant delay from their insurer or broker between 2020 and 2022 should get in touch as well as any hospitality, leisure and other customer-facing operators whose losses were particularly acute. Any businesses that accepted a partial or interim payment and wish to assess whether further sums are due are urged to review their policy, Hugh James added.
