Allianz in legal battle

A shop owner is suing Allianz, claiming the insurer has failed to pay out for lost profits following roadworks near his shop.

Nigel Bidgood, the owner of Sussex-based houseware firm All Seasons (Southern), made a claim against Allianz in June last year saying he suffered £180,000 in lost profits after 170 days of roadworks on gas pipes outside his shop.

Bidgood claims the roadworks hit his profits by causing a “mass exodus” of customers from the village, stopping customers from accessing his shop and putting people off from visiting the area.

The effect of the roadworks forced him to discount his products and make two members of staff redundant, according to a High Court writ.

Bidgood claims the ‘Complete Retailer’ product he bought from Allianz in 2003 covers him for the loss of profits.

Allianz are refusing to pay out on the claim, saying that Bidgood was not covered for the loss under his policy wording.

Allianz also disputes Bidgood’s claim that some of the policy wording is ambiguous.

In the writ, Allianz says: “The proper interpretation of the policy does not lead to ambiguity in the wording of any clause in the contract.”

Allianz property claims manager Harry Rule said: "We sympathise with the unfortunate position in which our insured found themselves through the actions of the gas company.

“But the covers arranged with Allianz were not designed to provide a remedy in these circumstances and did not in fact do so.”