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Business owners challenge insurance firm in Covid losses dispute Business owners challenge insurance firm in Covid losses dispute
(1 day later)
Sukhjeet Bahra says she had to give up her salon after her insurer refused to paySukhjeet Bahra says she had to give up her salon after her insurer refused to pay
"It's just sad and disheartening, to know that we've just been ignored, having paid our insurance.""It's just sad and disheartening, to know that we've just been ignored, having paid our insurance."
Beauty therapist Sukhjeet Bahra, 56, from Oadby, Leicestershire, is one of 69 business owners suing an insurance company for breach of contract.Beauty therapist Sukhjeet Bahra, 56, from Oadby, Leicestershire, is one of 69 business owners suing an insurance company for breach of contract.
Mrs Bahra, who runs Sajja Beauty Ltd, is part of a group action against insurer Beazley Syndicates after it refused to pay business losses related to the lockdown.Mrs Bahra, who runs Sajja Beauty Ltd, is part of a group action against insurer Beazley Syndicates after it refused to pay business losses related to the lockdown.
A spokesperson for Beazley said: "We do not comment on ongoing litigation."A spokesperson for Beazley said: "We do not comment on ongoing litigation."
Policyholders had their claims declined on the grounds that their business interruption policies were not designed to cover a national lockdown.Policyholders had their claims declined on the grounds that their business interruption policies were not designed to cover a national lockdown.
"I remember contacting them [the insurer] during the lockdown period and asking about the pay outs," said Ms Bahra."I remember contacting them [the insurer] during the lockdown period and asking about the pay outs," said Ms Bahra.
"I just remember being told that because it wasn't a local pandemic it didn't apply to us.""I just remember being told that because it wasn't a local pandemic it didn't apply to us."
Following the lockdown, which forced businesses to close their doors, many firms looked to insurers to cover some of their losses under so-called business interruption policies.Following the lockdown, which forced businesses to close their doors, many firms looked to insurers to cover some of their losses under so-called business interruption policies.
When Ms Bahra was declined any help from her insurer she took out a loan which she is still paying back, just to cover her bills. When Ms Bahra was declined any help from her insurer, she took out a loan which she is still paying back, just to cover her bills.
"It's affected us not being able to pay the full amount into our mortgage, so it affected everyday life. "It's affected us not being able to pay the full amount into our mortgage, so it affected everyday life," she said.
"We should be at the end of our mortgage, we're still a long way behind so it's just made us feel like we are constantly chasing our tail.""We should be at the end of our mortgage, we're still a long way behind so it's just made us feel like we are constantly chasing our tail."
As a result, she also had to give up the salon which she opened in 2015 and go back to running her business from her home.As a result, she also had to give up the salon which she opened in 2015 and go back to running her business from her home.
"I found it really hard, I felt like I was failing, going backwards, to come back home," said."I found it really hard, I felt like I was failing, going backwards, to come back home," said.
"It gave me a lot of anxiety and it took me three to four months to make the decision.""It gave me a lot of anxiety and it took me three to four months to make the decision."
Solicitor Chris Guy says his clients are being treated unfairlySolicitor Chris Guy says his clients are being treated unfairly
Solicitor Chris Guy, a director at RLK Solicitors, who is representing all of the business owners in the group action said: "They had insurance in place at the time that would cover for those losses and their insurance companies are still saying no." Solicitor Chris Guy, a director at RLK Solicitors, who is representing all of the business owners in the group action, said: "They had insurance in place at the time that would cover for those losses and their insurance companies are still saying no."
Mr Guy has accused the insurer of deliberately stalling to reach the six-year mark which is how long a breach of contract claim lasts. Mr Guy has accused the insurer of deliberately stalling to reach the six-year mark, which is how long a breach of contract claim lasts.
"This has been their tactic from day one, it's either, let the company go bust, so the claim dies when the company dies, or alternatively they drag it out as long as they can, so the claim becomes time barred, or the business just gives up." "This has been their tactic from day one, it's either, let the company go bust, so the claim dies when the company dies, or alternatively they drag it out as long as they can, so the claim becomes time barred, or the business just gives up.
"It is horrendous, I've had clients that have taken their own lives, I've had clients that have built a business up over decades and have had to fold it."It is horrendous, I've had clients that have taken their own lives, I've had clients that have built a business up over decades and have had to fold it.
"There have been family-run businesses for centuries that have been lost as a result of this." "There have been family-run businesses for centuries that have been lost as a result of this," he added.
Ms Halley is still paying off her bounce back loan Lauren Halley is still paying off her bounce back loan
Lauren Halley, 42, owner of the Beauty Room in Eastwood, Nottinghamshire is also part of the group action. Lauren Halley, 42, owner of the Beauty Room in Eastwood, Nottinghamshire, is also part of the group action.
"When the business was closed we contacted our insurance to make a claim on the business interruption clause and it was denied by the insurance," she said."When the business was closed we contacted our insurance to make a claim on the business interruption clause and it was denied by the insurance," she said.
"We did take it further but they said it wasn't applicable and we couldn't get a pay out."We did take it further but they said it wasn't applicable and we couldn't get a pay out.
"It was part of the policy. We've been open nearly 20 years and we've paid our insurance for 20 years and when we needed to make a claim we should have been entitled to that money.""It was part of the policy. We've been open nearly 20 years and we've paid our insurance for 20 years and when we needed to make a claim we should have been entitled to that money."
Like Ms Bahra, she also took out a bounce back loan which she is still paying back. Like Ms Bahra, she also took out a bounce back loan, which she is still paying back.
"I think, if we got the money that we are entitled to it would help a lot of businesses pay off loans, that they've still got outstanding," she said."I think, if we got the money that we are entitled to it would help a lot of businesses pay off loans, that they've still got outstanding," she said.
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