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.