New ‘Hospitality Insurance Group Action’ launches to hold insurers to account for UK business interruption policies


A new hospitality sector-wide action group is being launched today to hold insurance companies to account for policy pay-outs arising from lockdown and Covid-19 related losses.

Hospitality Insurance Group Action (“HIGA”) is open to businesses which have been forced to close within the sector, including hotels, restaurants, bars, pubs, nightclubs and leisure businesses, if their insurance company is silent or refusing to honour policies relating to business interruption due to this pandemic and the lockdown.

Any collective claim by HIGA against the insurance industry is likely to run into tens of millions of pounds, notwithstanding often inadequate policy limits, such is the extent of members’ financial damage.

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Leading litigation law firm Mishcon de Reya LLP, has agreed to advise HIGA on the parameters of bringing a collective group action against a range of insurers.

Mishcon has secured external funding to cover the policy review exercise and is working with Philip Edey QC, of Twenty Essex Chambers.

There is no cost to any UK hospitality business to register with HIGA to have their existing business interruption insurance policy reviewed by Mishcon.

HIGA registrant Dan Fox, managing director of Craft Locals (owner of 3 North London pubs) commented: “If insurers don’t come through, this will have a devastating impact on not only the business and its continued survival, but the livelihood of the fantastic team members that we employ, and the local communities of which we form such an integral part. We will do everything in our power to renew these activities and right now we’re hoping HIGA can help us get our insurers to do the right thing.”

Sonia Campbell, partner and head of the insurance disputes team at Mishcon de Reya LLP, comments: “Hospitality sector businesses, large and small, have been particularly hard hit by the government-enforced closure during this pandemic and desperately need to mitigate their losses. In times of crisis they expect their insurance to respond. Yet I am hearing time and time again that insurers are either stone-walling, unfairly limiting or simply point-blank refusing to pay out under business interruption policies. This strikes us as something that is open to challenge. I look forward to assisting all members of HIGA in exploring the possibility of a group claim. There may well be some light at the end of this industry’s very dark tunnel.” 

To express interest in joining HIGA, business owners should register their details at 

Tags : companyhotelsinsurancepolicy
Zoe Monk

The author Zoe Monk


  1. I have a small group of boutique hotels (7 properties) all closed obviously. My insurer says that the virus is not listed on the policy therefore not covered. How something that is new could possibly ever be covered now or in the future. This is why we have business interuption cover.

  2. It is not what is listed on the policy it is what is exempt on the policy. Corona Covid 19 is not exempt. Expensive business interruption insurance should cover everything which interrupts our business otherwise why bother to insure.

  3. I have BI with loads of illnesses listed but not Covid 19 so they are refusing to pay out. We have five holiday cottages are out of pocket by thousands .

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