Esther McVey has called on the insurance industry to do the right thing and help thousands of businesses survive the pandemic by paying out monies owed immediately following a ruling by the top court in the land.
The Tatton MP said businesses had suffered tremendously as a result of Covid-19 and many were dealt a further blow after being told their policies did not cover such eventualities when trying to make a claim last year.
Now, following a court ruling which will force insurers to pay out through business interruption policies for earnings lost in the first lockdown, Ms McVey wants payments made immediately to offer a lifeline, hoping immediate payment may save people’s livelihoods.
She said: “I have spoken to many businesses who believe Friday’s verdict offers them a lifeline but know now the crucial factor is how quickly payments are processed. Any delay will be the difference between surviving or going under for some.
“Others, including Nicola Newton, of the Rose & Crown in Knutsford, are still waiting to hear if their business is covered and that is stressful enough without the added worry of when the money will come. Insurers must do the right thing and not drag their feet but pay up and protect businesses and jobs.”
The Supreme Court found largely in favour of small firms receiving payments from business interruption insurance policies, which could provide a lifeline allowing them to continue to trade. The ruling followed many insurers refusing to pay out for submitted claims arguing only the most specialist policies had cover for the unprecedented situation.
Victoria Stewart, from Knutsford based group The Alchemist, which has 20 cocktail bars and restaurant and employs more than 1,000 young people, saw their claim rejected last year.
She said: “We pay more than £100,000 a year in insurance premiums so couldn’t believe it when we were refused the business interruption pay-out. I’m not sure what could be more of an interruption than complete closure for months.
“It’s fantastic news to hear the courts overturn the insurers’ arguments. For larger hospitality businesses like ours this will help towards the National Insurance and pension costs of keeping our talented teams in work during this latest lockdown.”
