Butlin's launches legal action over flooding insurance bill

Butlin’s has launched legal action over a £60m insurance bill after flooding shut down its largest resort.

The holiday park company has filed a claim at the High Court against insurers led by Aviva in a dispute over the cover for damage to its site in Minehead in Somerset.

The camp closed its pool, buffet restaurant and central stage in September 2023 following flash floods caused by heavy rainfall. It was forced to cancel some bookings amid ongoing repairs and the company said the incident had cost the business £60m.

According to the Financial Times, the dispute with insurers hinges on the definition of a “storm”. The paper said insurers have told Butlin’s that because the damage fell into the “storm” category, it was only covered up to a maximum of £25m, which has been paid.

A Butlin’s spokesperson said: "Our Minehead resort was heavily impacted by the severe flooding that affected many businesses and homes in the south-west [of England] in September 2023.

“As a result of the extensive damage to the Minehead site our team have worked very hard to ensure the resort is back open and running, but as this is now a legal matter, we’re unable to comment further.”

Butlin’s was founded in Skegness in 1936 by Billy Butlin, who aimed to revolutionise British seaside holidays.

Today, it operates three resorts, in Minehead, Bognor Regis and its original park in Skegness.

Butlin’s was sold to private equity firm Blackstone in 2021 but was bought back by its previous owners the Harris family, one of the founding families behind Bourne Leisure, in 2022.

Aviva declined to comment.