Nightlife broker seeks legal advice after QBE rejects clients' Covid-19 claims

Simon Mabb, managing director at NDML, which is part of Romero Insurance Brokers, told Post that he believed his clients’ claims may be valid under a clause in their policies extending cover to notifiable diseases within a 25-mile radius.

In addition to seeking legal representation, Mabb said NDML had attempted to engage QBE to discuss the claims but as of Monday had not received a response from the insurer.

Mabb explained that in most instances, QBE’s rejection of the claims relied on distinguishing the coronavirus from the actions taken by government in response to it, pinning the cause of the closures on the latter.

Besides QBE, NDML also has clients with policies issued by Hiscox, which it is now also looking over.

Last week saw the formation of a group of businesses calling itself the Hiscox Action Group, which is also considering pursuing legal action with regard to rejected businesses interruption claims. As of Monday, more than 135 businesses had joined the group.

Among NDML’s clients is the Chapel nightclub in Salisbury, which closed on 20^th March and has furloughed staff.

Amanda Newbery, managing director of the Chapel, told Post: “I’m quite risk averse, so I’m always making sure that we’re covered for everything that we can possibly be covered for, including terrorism and diseases.

“We had been notified by NDML at the beginning that our broker believed that we were fully covered because the wording is about as comprehensive as it gets.”

Newbery explained that the nightclub didn’t meet the criteria for the various relief and lending schemes put in place to assist businesses by the government.

“We’ve been around for a long time and we’re profitable. It’s a small profit, but we are profitable. But we’ve have fallen between the cracks of absolutely everything and so our insurance is a completely crucial to us,” she said.

“The only big thing coming out of our bank every month now, because I’ve had to cancel everything, is our insurance premium, and there’s £2900 a month going out.

“Our brokers are actually waiting to receive an official decline letter. If we did have a decline letter, then I presume at that point, we could go to the ombudsman.”

Backing potential legal action against QBE, Newbery added: “We’re going to take this we’re going to take this all the way.”

“I totally understand that there are big strategic unreasonable moves to try and make them cover things that they haven’t covered. But if there is a cover, they should just look at those businesses that are covered with the right wording.”

QBE has been contacted for comment.