Trade bodies challenge insurers to meet their obligations to the sector

By James McAllister

- Last updated on GMT

Trade bodies challenge insurers to meet their obligation to the sector during Coronavirus crisis

Related tags British beer & pub association ukhospitality British institute of innkeeping Society of independent brewers Insurance Coronavirus

Trade bodies from across the hospitality sector have called on the Association of British Insurers to work with them to provide further support for pubs and breweries hit by the Coronavirus crisis.

In a joint letter, the British Beer and Pub Association (BBPA), British Institute of Innkeeping (BII), Society of Independent Brewers and UKHospitality claim that as few as 4% of businesses in the sector have made successful insurance claims following the Coronavirus lockdown.

The letter refers to a recent industry survey, which says that only 1% of hospitality businesses, 3% of BII members, and 4% of BBPA member companies have received a positive response from their insurer.

“In normal circumstances this would be unacceptable, in this crisis it is frankly deplorable and threatens business survival for thousands of pub businesses,” the letter reads.

The results of the survey have prompted a call from the respective trade bodies, demanding for an urgent meeting ahead of any legal action that may be planned.

The letter reads: “We have come together in a concerted effort to mitigate the most damaging aspects of the lockdown for our businesses and have presented a unified voice to Government in calling for a comprehensive package of measures to sustain our sector, protect jobs & livelihoods and safeguard our great British pubs.

"Within this context of a national, collaborative effort across our entire supply chain there has been one notable omission – insurance companies.

“We had hoped insurers would work with us at this critical time. With one or two exceptions, the collective failure of insurers to step up and meet their obligations has been deeply disappointing.

“We are aware of legal actions pending but in advance of these cases proceeding we would urge the insurance companies’ senior executives to agree to meet with us to discuss and lead a constructive way forward at the earliest possible opportunity.

“With additional lockdown measures planned for our sector and further material disruption to our businesses likely, the compensation owed to our pub, brewery and broader hospitality businesses has become an even more urgent matter.”

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