Bermuda-based insurer Hiscox will face legal action “within days” over £40m ($49m) of denied UK business interruption claims, according to Mishcon De Reya — the legal counsel of the Hiscox Action Group (HAG).

After assessing how viable a group action lawsuit would be, Mishcon said the group had a “good chance” of success — advice that secured a deal from Harbour Litigation Funding to cover its legal costs.

Mishcon opted for a “expedited arbitration claim” — a type of commercial lawsuit that avoids the public court system in favour of a ruling by a sole arbitrator to speed up the process.

The legal firm also believes Hiscox could be on the hook for further costs if it can prove the insurer violated a piece of legislation governing claim payments.

Read the full story to learn why the HAG believes it can’t wait for the FCA to bring its test case to the High Court.