In the June 2024 edition of R3’s Recovery News compilation, Aaron Le Marquer (Head of Policyholder Disputes) and Alex Jay (Head of Insolvency and Asset Recovery) commented on the ongoing Covid-19 business interruption insurance litigation and urged IPs to check policy documents for unpaid claims. 
Insurers’ refusals to pay out on policies may have caused companies across the UK to initiate or succumb to insolvency proceedings. The scope for recovery by both businesses and IPs has been widened by court rulings in the ATP and LMIE test cases, both led by our Policyholder Disputes team. The Court of Appeal’s ruling in the ATP test case is now expected in 2024. Read the full article in Recovery News here

What should IPs be looking for?

Aaron noted that “we are seeing some cases coming to us not related to Covid at all, from the insolvency practice. In some cases, the refused insurance payout may have been a significant factor if not the driving factor of insolvency.

“We know from the data that there are many unpaid claims out there and there’s a lack of awareness in the IP community that they can still be pursued post-insolvency, four years after the event when the losses were suffered.”

Alex said: “It’s worth noting that the courts have been fairly open minded about what insurers ought to be responsible for in the context of major claims recently. There have been a number of cases where the court have sided with claimants as opposed to the insurers, finding that insurers ought to be responsible for a share of the financial burden of the pandemic in the right circumstances.”

He added that some types of businesses, particularly hospitality, leisure and retail are more likely to possess valid claims, and if IPs are appointed over such a business it would be sensible to check policy documents for unpaid claims.


Stewarts Covid Claims Service

Liquidators or administrators who think a company may have a valid business interruption insurance claim should get in contact with our team via email:

Directors of companies which suffered interruption following the Covid-19 pandemic should visit the Stewarts Covid Claims Portal to obtain a free policy review and advice on whether they are now entitled to pursue a claim. Subject to the terms of each insurance policy, it is expected there are still many thousands of policyholders who could collectively recoup tens of millions of pounds in business interruption losses from their insurers as a result of the pandemic.

Our Policyholder Disputes team have advised hundreds of policyholders of all sizes and across all industry sectors in relation to their Covid-19 business interruption claims. The department will be working in tandem with the firm’s Insolvency and Asset Recovery practice and can provide additional legal insolvency support where required.



You can find further information regarding our expertise, experience and team on our Policyholder Disputes and Insolvency and Asset Recovery pages.

If you require assistance from our team, please contact us.



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