An insurance broker and underwriter are under fire from about 100 UK nurseries that say the denial of their business interruption claims leaves them at risk of permanent closure due to Covid-19.
Specialist broker Pound Gates could be under fire in the potential class action due to claims of negligence from the group, which believes it was misadvised on which perils the coverage would respond to.
Legal firm Fieldfisher is in the early stages of investigating the potential for a class action lawsuit, but said it could also involve Ecclesiastical Insurance – the firm that underwrites each policy.
Joshua Fellenbaum, director in the dispute resolution team at Fieldfisher, told Nursery World: “Brokers have particular duties. There may be broker negligence for a failure to advise when they sold the policy. It’s about protecting the nurseries. We’re looking into it, and we want to fight for them.”
He added that if a case is brought against Ecclesiastical or Pound Gates, it will be fought on a no-win-no-fee basis.
The new dispute is significant because it’s the first time a UK broker has been visibly placed in the firing line over business interruption insurance.
Ecclesiastical’s standpoint, much like the majority of insurers in the market, is that its product does provide some coverage for non-physical damage, but only following the occurrence of a pre-specified list of diseases.