Serina Russel, the owner of The Underground Tattoo Studios in Walsall, is among 69 small business owners initiating legal action against Beazley Group regarding business interruption insurance claims. Her family business has operated for 27 years, and when the pandemic led to lockdowns, Ms. Russel expected her insurance to cover the losses. However, Beazley Group denied her claim, arguing that the policies were not intended to cover national lockdowns.
Ms. Russel holds a policy she has paid into for 15 years, costing £46 monthly. As the lockdown extended, she struggled to comprehend why her business interruption insurance did not apply. She noted that the policy did not specifically exclude pandemics, prompting her inquiry into the coverage validity. As a result of the denied claim, Ms. Russel took out a bounce back loan, which she is still repaying after the business was closed for approximately ten months due to safety regulations.
Lucy Foster, who runs the Lucy Foster Wellness Clinic in Tamworth, also faced challenges due to similar insurance claim denials. Her beauty business, which includes a training school that closed during the pandemic, has been impacted financially. She too took a bounce back loan of £25,000 to address cash flow issues.
The group of business owners is represented by Birmingham-based solicitor Chris Guy, who contends that the wording of Beazley’s policy is broad enough to include pandemic coverage. He asserts that the government’s decision to close non-essential businesses during the pandemic constitutes a denial of access, which should activate business interruption insurance clauses. Business owners have until March 2026 to file a legal complaint, as claims are limited to six years from the incident date, which in this case is March 2020.
Source: https://www.bbc.com/news/articles/c9d08xq37jxo?at_medium=RSS&at_campaign=rss