Nigel Holland
Nigel Holland

” A number of businesses have taken out insurance policies, which on the face of it, cover the business if the business fails due to events such as the recent pandemic.

On closer examination these policies may be not fit for purpose.

Some of these disputes are going to Court. The businesses claim they are covered and the insurance companies are claiming that the claim is invalid. If the businesses loose they could go out of business.”

Nigel Holland

Nigel Manton, of the Fresh Skin Clinic, in Cheshire spent thousands on an insurance policy which does not cover him.

His firm is one of hundreds that say they were wrongly denied cover for the virus and could go bust as a result.

Some insurance companies claim their policy was not intended as cover for a lockdown.

A court case to decide whether many businesses receive insurance payouts for damage caused to them by the pandemic begins on Monday.

However, insurers say most business policies simply do not cover pandemics.

About 400 companies have complained to the financial ombudsman, prompting City regulator the Financial Conduct Authority (FCA) to bring this case.