INTRODUCTION

The impact of coronavirus has hit far and wide. Not just in terms of the tragic loss of life but also the loss of livelihood. No sector has been impacted harder than hospitality. Following the Prime Minister’s announcement in March, hotels, restaurants and leisure facilities were forced to close. At a time when most owners would be looking to their insurance companies for support, most insurers have firmly shut their doors in the faces of their policy holders. Anyone who has taken out business interruption insurance would reasonably expect circumstances such as these – being told to close by the Government – to be fully covered. This crowdfund appeal, endorsed by UK Hospitality, will mount a legal challenge against the insurance sector’s refusal to pay out to hospitality businesses.

ABOUT ME

My name is Rob Atkinson. I qualified as a solicitor in 1999 and work exclusively in the hospitality industry. I act as in-house counsel for Black and White Hospitality which owns the franchise rights for Marco Pierre White restaurants and manages a number of hotels across the UK under brands by Hilton and IHG, as well as independents. I will manage this campaign, with support from specialist private practice solicitors and leading barristers, ensuring donations are spent wisely and with maximum impact.

BACKGROUND

As someone firmly entrenched in our amazing UK hospitality industry, I have seen first hand the devastation almost every business has suffered. Revenues reduced to zero overnight. We have been badly let down by our insurers. Legal action started some weeks ago to challenge this in the USA. Various groups have now formed in the UK with similar intentions. This crowdfund aims to lead the fight for our hospitality industry and add to the pressure currently being applied by Government, the FCA, UK Hospitality and various PR campaigns.

THE PLAN

We have held preliminary discussions with a leading city law firm specialising in policy disputes. They have already looked at numerous policies within the hospitality sector and consider that many policies potentially cover the losses currently being experienced and that the insurers' position should be challenged. It is, however, important to note that not every policy will be drafted the same and the strength of potential challenge will vary. Phase 1 is intended to gather together all different policy wording variations in our hospitality sector, group them together by category and then get a view from specialist insurance lawyers on which policies offer coverage in principle and which do not. This will be carefully managed so that costs do not spiral. A leading barrister will be engaged to analyse the excuses raised by insurers and suggest grounds for challenge in each category.

Phase 1 will therefore include;

- Initial review of policies, and insurers' reasons for declining.

- Advice on coverage under each “category” of policy.

- Allocate claims to track: (1) no coverage; (2) potential coverage; (3) stronger case on coverage.

The results will be communicated to all our backers, and the next phase commenced.

Phase 2 – Pre-action representation

Groups will be formed with a view to launching a group claim against insurers. Initial focus would be on the stronger claims. We would continue to work with specialist lawyers and a leading barrister to assist in preparing claims to be issued in Court.

Prior to the issue of any claim, we would seek to engage with insurers by setting out our case. The responses will be reviewed and reported. Settlement, in principle, with each insurance company would be considered. Stand alone policyholder settlements would not been encouraged - we are in this as an industry and must fight and attempt to find resolution as an industry.

Phase 3 – Litigation

If Phase 2 is not successful, then Court proceedings will be issued.

N.B. Claims by organisations with an annual turnover of less than £6.5 million and fewer than 50 employees (or a balance sheet total of less than £5 million), with a claim value of under £350,000 may be referred to the Financial Ombudsmen Service for determination.

STRENGTH IN NUMBERS

The insurance industry is, as a whole, understandably protective of its own position. The best way to engage them in meaningful discussions is as a group. The hospitality industry is tight knit as recent shows of strength and camaraderie in the face of adversity have shown. By working together, we can help to secure financial support that has been paid for and is deserved. This should not be just a problem for the Government to deal with while the insurance companies get away with refusing to honour claims. Please pledge whatever you can to help support the action on behalf of our industry to ensure the survival of many businesses which would not otherwise survive.

DONATIONS

If you want your own policy to be looked at, we would ask for a minimum donation of £200. This will ensure that your specific wording is reviewed and included in the general advice. If, on the other hand, you want to support the campaign generally and access the results of the initial advice then you are asked to make whatever donation you can afford. Once the advice is provided you can consider it alongside your own policy to judge the chances of a successful challenge. The more pressure we can apply, alongside pressure being applied elsewhere, the stronger the chances of success.

We welcome support from groups, organisations and leading industry figures who are passionate about seeing hospitality receive the support it deserves. Even if you are not directly involved in hospitality, but want to see the industry recover, please donate to the cause. Nobody wants to see their local bar, restaurant, hotel or club fail because the insurance industry won't play their part.

All surplus funds remaining at the end of the campaign will be released to charity.

We are already fortunate to have the support of industry leading heavyweights such as UK Hospitality and Best Western Hotels. Our followers increase daily, all unwilling to accept the unacceptable. Please join our group.

Let's help the hospitality industry get back on its feet as soon as we can...thank you.