Other insurers such as Hiscox have also been in the business interruption firing line recently
Allianz has become the latest insurer facing a group action over its business interruption policies.
London based law firm Edwin Coe LLP is teaming up with Harris Balcombe LLP to lead claims for business interruption losses against Allianz under their policy wording for resilience material damage and business interruption.
The insurer joins a list of other insurers such as Hiscox also facing litigation over the scope of cover provided by business interruption.
A spokesperson for Allianz said: “We are unable to comment on individual cases but where our policies provide elements of cover that respond to Covid-19 we have already made over 200 interim and final settlement payments.
“We continue to resolve claims in accordance with the FCA’s guidance but regrettably many businesses will not have purchased cover that will enable them to claim on their insurance.”
Michael Whitton, partner at Edwin Coe said: “This Allianz policy insures business interruption loss caused by interruption or interference to the insured’s business as a result of a notifiable disease occurring within the vicinity of an insured location.
“It would strike me as fanciful to suggest, as Allianz do, that cover would only be provided in the event that the loss occurred in the vicinity but not beyond thereby ruling out a pandemic. That’s not what the policy says.
“If this policy wording doesn’t give rise to an entitlement to an indemnity in relation to business interruption losses resulting from the Covid 19 shut down, I don’t know what policy wording does.”
According to Edwin Coe, many policies were arranged by Jelf and Marsh, both have been contacted for comment.
Lastly, Whitton has urged policyholders with resilience policy wordings to contact the law firm.