'Businesses need speedy resolutions despite the hollow insistence by Hiscox UK that they are paying out quickly. Our efforts will hold them to account'

London law firm Mishcon de Reya has begun an arbitration against Hiscox Insurance, to hold the company to account for failing to pay out on  business interruption insurance claims totaling £40 million. 

The action group comprises more than 350 businesses who have a Hiscox policy and were denied payouts on the basis that the company's property business interruption policies contained exclusions for the risk of pandemic.

Businesses throughout the UK - including Raymond Blanc's Manoir Aux Quat' Saisons - have seen their claims refused, prompting action from the FCA. 

'Their efforts won't provide for a speedy outcome'

In fact, Hiscox is one of eight insurers taking part in a UK court test case filed by the Financial Conduct Authority (FCA) - the purpose of which is to have the companies policies examined by a UK court, which will provide clarity for all parties involved and settle the dispute.

Founding member of the Hiscox Action Group Daniel Duckett told The Insurance Journal that he and other Hiscox claimants had decided to work with Mischon De Reya rather than wait for the outcome of the case. 

He said: “We have been very firm in our view that their efforts won’t provide for a speedy outcome due to the nature of the legal system and rights afforded to the insurers.” 

“Even if a decision is made in August according to the FCA timeline, the insurers are certainly poised to appeal if a ruling is against them. And, indeed, the FCA confirmed as much to us in a conference call a few weeks ago.

"Thus, the process would need to be exhausted through to the supreme court and that final decision would be what would filter down through the insurers.”

Other founding member of The Hiscox Action Group, Mark Killick, said called the launch of the claim "an important milestone in our campaign to force Hiscox to do the right thing and honor its obligations.”

He added: “It will be interesting to see if Hiscox is now willing to work with us to swiftly resolve this issue or if it seeks to delay things even further.”

The action group has been vocal enough to sway businesses, as testified by the following social media posts:

Hey Coffee Twitter - looking to renew our business insurance. Which UK insurers do you use for your roastery? I will *not* use Hiscox.

— Coffee by the Casuals (@CasualsCoffee) June 16, 2020

Look at Sweden

Among other defenses, the company has sought to compare the financial hardship of UK businesses versus companies in Sweden, where no 'business interruption' took place, as there has been no lockdown since the coronavirus outbreak began. 

It argues that while the pandemic was predictable, the measures taken by the UK government weren't, and that these are in fact the cause of businesses struggling.