Rare Restaurants joins battle for Covid insurance payout

Rare Restaurants, owner of the Gaucho and M brands, has joined the fight to secure a pay-out for business interruption insurance ahead of an arbitration hearing this spring.

The group has joined a campaign led by Black and White Hospitality, which is behind the Marco Pierre White Restaurants franchise, to argue that insurers should provide coverage for enforced closures during the pandemic.

Black and White is preparing for an arbitration hearing with insurer Tokio Marine Kiln, which is expected to take place in April or May.

Rob Atkinson, legal director at Black and White, said: “Our policy wording, and that of those who have joined the campaign, is very clear. If there is a closure by a statutory body, then the policy should provide coverage. Given that the government ordered us and many others to close down, it’s hard to see how there can be any ambiguity around this.”

The original focus in the case was on the hotel sector but the campaign has since broadened to the restaurant sector.

In January 2021 a Supreme Court ruling found that certain types of insurance policy should pay out for coronavirus disruption, although this was only estimated to affect less than 10%of impacted businesses in the UK.

Atksinson said: “[Despite] rulings from the Supreme Court and the FCA, our insurers continue to play games. We are left with no other choice but to press on with arbitration. We have grouped together with other policy holders across the UK and are ready to take this as far as we need to.

“Businesses like Gaucho and Black and White Hospitality took out policies in good faith so it’s very disappointing that Tokio Marine are still prepared to take this stance, almost two years after Covid-19 had such a devastating impact on the hospitality sector.”

He added: “I’m convinced that there are still policy holders out there who don’t realise that they have a case and recommend that if anyone thinks they’ve been palmed off to get their policy checked by a specialist lawyer and not rely on communications from your insurer or your broker.”

Tokio Marine Kiln has been contacted for comment.

The battle against insurers has continued with restaurant group Corbin & King pursuing its insurer Axa for non-payment relating to its “denial of access” insurance.