Nearly two-thirds of pub owners have also had their pandemic insurance applications refused

The British Beer and Pub Association (BBPA), the trade association representing brewers and pubs, has revealed that none of its member organisations have so far received a pay out from business interruption (BI) or pandemic insurance policies, despite making claims relating to the ongoing Covid-19 outbreak.

Of those surveyed, 56% of the association’s member organisations have had their business interruption claim rejected, while 44% are still awaiting an outcome.

From the surveyed member companies that have pandemic insurance, 67% of claim applications have been refused so far, with 33% waiting for an outcome.

Separate research from the British Institute of Innkeepers also found that just 3% of pubs had been successful in receiving a BI insurance claim.

Pubs were among the businesses affected when the government launched its current lockdown regime in March, which dictated that all non-essential businesses were to close in order to adhere to social distancing measures, mitigating the spread of Covid-19. This has meant that many pubs have been without their usual income stream for a number of weeks.

Faced with these figures, the BBPA is pleased that the FCA is seeking to obtain a court declaration in order to remove uncertainty and ambiguity from BI policy wordings.

Emma McClarkin, chief executive of the British Beer and Pub Association, said: “There has been a severe lack of clarity for pubs on business interruption insurance claims. This had added to the terrible uncertainty our sector faces in what is already a very precarious situation.

“It is simply not right that 56% of pub business interruption claims have been rejected, whilst 44% still await an outcome.

“We hope the FCA announcement will help resolve some of the uncertainty our sector faces on its insurance cover.”