Jabbar Khan, founder and director of the Lasan Group, is one of a number of business leaders fighting insurance companies that are refusing to pay out on business interruption policies due to the coronavirus pandemic. He has now appointed Rubric Lois King (RLK), a Birmingham-based law firm that is representing companies across the UK, to challenge insurance companies that insist the coronavirus pandemic is exempt from the existing BI policies.
“Our insurance company was happy to take the money for our premiums and now it is now evading its responsibilities,” said Mr Khan, who runs Lasan, Raja Monkey and Fiesta del Asado in Birmingham and Solihull.
A test case is already underway in the High Court after the Financial Conduct Authority took Europe’s largest insurers to court to establish if they should pay out on pandemic-related claims. If the courts decide that the insurance companies are wrong, the ruling could mean tens of millions of pounds in additional claims.
RLK has reviewed the policies of thousands of businesses and has already agreed to represent 300 businesses, including those in hospitality, hair and beauty, and estate and wealth management sectors. The law firm has also engaged the services of members of Birmingham-based 3PB Barristers to assist in preparing the cases.
Business interruption insurance provides cover for financial losses if there is interruption due to damage to property, such as fire or flood. However, some insurance policies also cover interruptions caused by non-damage denial of access, notifiable diseases and restrictions imposed by a public authority.