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Dirty Martini gears up for legal battle over lockdown insurance

CG Restaurants & Bars, owner of cocktail bar brand Dirty Martini, is leading an action group to start legal proceedings against insurers RSA and QIC to recover business interruption losses suffered due to Covid-19.

 

Daniel Coffer, director of CG Restaurants and Bars, said: “This has been a horrendous time for the hospitality sector, and it will continue to be difficult in the near future. Hospitality businesses have had to fight tooth and nail to obtain an indemnity from their insurers, notwithstanding the clear terms of the policies they purchased prior to the pandemic.

 

“The continued effect of the new Omicron variant only highlights the need for members of the hospitality sector to take action to recover the sums to which they are contractually entitled. Our claim alone is substantial, and there are others who no doubt have similar sized claims who need the protection that this class action will afford.”

 

The group will focus on recovering an indemnity for the multiple lockdowns that have occurred because of the pandemic.

 

Head of Edwin Coe’s insurance group, Roger Franklin, said: “The purpose of this action group is to establish the precedent that the RSA 3 wording, which is underwritten by RSA and QIC Europe Ltd, gives rise to multiple indemnity periods and thus, potentially, responds to all the lockdowns and restrictions experienced by the hospitality sector in 2020. So far insurers have indemnified their insureds for lockdown one only, but that ignores the reality of the policy wording and the government’s response to increasing cases of Covid-19 throughout 2020.”

 

The case is one of several test cases advanced by the firm in respect of business interruption losses caused by Covid-19. A further test case against AXA involving the owner of the Wolseley restaurant in London is due to be heard at the end of this month.

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