Hiscox agrees deal with COVID-19 action group over BI claims settlement

Hiscox Insurance Company has agreed a settlement with a group representing around 400 policyholders that were in dispute with the specialist insurer over COVID-19 related compensation claims.

The insurer and the members of the Hiscox Action Group (HAG) have reached a settlement with relation to business interruption losses suffered following the UK Government’s COVID-19 lockdown between March and July 2020.

HAG members had participated in the test case commenced by the Financial Conduct Authority (FCA), which was determined in a judgment of the Supreme Court in January 2021. It also brought separate proceedings relating to the losses that were not covered by the FCA’s test case.

HAG’s private arbitration proceedings were funded by Harbour. It brought its case against Hiscox in 2020, and the settlement was in line with the Supreme Court judgment. The proceedings have now been resolved, with the terms of the settlement remaining confidential.

Hiscox was one of eight insurers to participate in the test case, which sought to clarify the legal status of business interruption claims related to the government lockdown.

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