The initial funding will allow appointed law firm Mishcon de Reya to review policy claims

The Hiscox Action Group (HAG) has secured funding from dispute risk management and litigation funding firm Harbour Litigation Funding to financially support its legal action against insurer Hiscox for rejecting business interruption (BI) claims related to the Covid-19 pandemic.

The HAG is a collective of Hiscox clients whose coronavirus-related business interruptions claims were rejected. The disputed policy insures against financial loss arising from an inability to use an insured property due to ”an occurrence of any human infectious or human contagion disease”.

The group, led by film company Media Zoo, now consists of more than 200 policyholders.

Last week, the HAG appointed London law firm Mishcon de Reya as its legal representation. The initial funding awarded by Harbour will enable Mishcon de Reya to review the HAG’s policy claims – if the results provide enough good claims to support a case, then Harbour has said it would look to commit sufficient funds to take the case through to trial.

Stephen O’Dowd, senior director of litigation funding at Harbour, said: “It is fantastic to be working alongside Mishcon de Reya again, on an issue where seeking legal redress seems to be the only option remaining for hundreds of small businesses across the UK.”

Richard Leedham, partner in Mishcon de Reya’s dispute resolution department, added:We are pleased to be working again with Harbour. Hiscox have said that they did not intend to cover what has happened. That is irrelevant. We are looking at what is in the contract. They have provided a very broad form of wording and its natural meaning would cover someone whose business was interrupted by the lockdown.

On its Twitter page, the HAG wrote: “Very proud to have secured Harbour as our partner for litigation funding with @Mishcon de Reya. We know their reputation will serve to send a strong message to @hiscoxuk.”