A rising story is emerging around the refusals of some big names insurers to refuse to pay out on Business Interruption insurance for numerous bars, night-clubs, restaurants – in fact, any business Interruption cover venues effected by Corvid-19

This is from NTIA, an organisation that is battling to support the night-time economy venues from small independents to large multi-site venues throughout the UK. Together with the market leader insurance broker NDML, a class action against the insurers is now underway.

This is the clause in the NFU Mutual policy, but a great number of insurers are doing the same

WE will pay for loss of INCOME arising from an incident in the immediate vicinity or within a one mile radius of the
PREMISES where access is hindered or prevented by the action of any civil or statutory authority or by order of the
government or any public authority for more than 24 consecutive hours.
The most WE will pay in any one PERIOD OF INSURANCE is £50,000.

Yet they do not consider that Corvid-19 and the total closure ordered by UK Gov to actually count and when contacted to confirm their position this is again the response given:

Thank you for your email. I am sorry that you feel that the answer I provided you when we last spoke was incorrect. I can confirm that the response I provided was correct and that NFU Mutual’s position has not changed.
In line with UK market practice, our standard Business Interruption cover usually requires damage to property in order to be triggered. This covers damage from events such as fires, floods and thefts”.

Now for me, the Interpretation is very clear, yet they, like many others, have given replies similar tot above!


Many Companies have paid in good faith year after year for these business insurance interruption policies and now when they are needed to fulfil the cover the insurers are looking for any way possible to avoid paying out, what is absolutely clearly covered.

Luckily for the small Independent venues who have joined with NTIA and NDML Insurance Brokers they have been extremely well supported by both of these organisations to the degree that they are being represented for free with NDML funding the class action, lots of venues insured with other brokers may now be regretting their position as not every broker is committing as many resources into supporting the night-time economy as these two organisations.

The NTIA is also battling the Landlords of venues who have not been helpful to their tenants as well, I’m not sure where the landlords think the revenue would be appearing from to cover the rent bills, at this time in the UK I believe that everyone should be doing their share of carrying the burden, if not then the industry is doomed! and Landlords will not be getting any money for a long time!

HSADD says: Well done NDML and NTIA, without this support I dread to think how the venues would deal with this issue!

One of the insurers has answered the criticism levelled at not just Hiscox but others too and you can read their response reported here:

If you have any issues caused by Insurance who have not paid out for business interuption insurance then use the buttons below to cantact either NDL or NTIA

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9th June 2020

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