Insurance victory the 'best news in months', agents say - TravelMole


Insurance victory the ‘best news in months’, agents say

Wednesday, 15 Jan, 2021 0

A supreme court ruling that insurers must pay out to small businesses decimated by Covid has been heralded as the ‘best news for months’ for the travel sector.

The ruling, delivered earlier today, means travel retailers – and thousands of other small UK businesses who took out business interruption insurance – will receive payouts.

Insurers had tried to wriggle out of the policy by arguing it was not designed to cover a government-imposed lockdown.

Judges dismissed the argument leaving insurers liable for payouts estimated to be worth more than £1b. 

The Scottish Passenger Agents’ Association (SPAA) said a survey in March, and again in August, showed 35% of its members had made a claim on their business interruption policies. None had been successful.

"Today’s news that the Supreme Court has ruled that insurers must pay out to small businesses is some of the best news which our industry has received in many, many months," SPAA President Joanne Dooey said.

"Travel agents paid their insurance premiums for years expecting that, when they needed it, their insurers would pay out. Instead, they found that they were, in effect, told that the most significant interruption to business ever ‘didn’t count’ as business interruption because it was ‘unprecedented’.

"We hope that the relevant insurers will now ensure smooth and swift settlement of our members’ claims."

The ruling could provide many small businesses, which have been forced to close because of Covid, with a desperately-needed financially lifeline.



 



Most Read

Exploring Brooklands Museum with Alex Patterson

Global Tourism Challenges and Upcoming Events: A Conversation with Don Welsh

Peebles Barbeque: A Legacy of Flavor and Tradition

Exploring Bok Tower Gardens with Erica Smith

Rue’s Living Water Boat Cruises: Exploring Winter Haven’s Chain of Lakes

Durango and Silverton Railroad: A Timeless Journey Through History and Scenic Beauty

Walt Leger on New Orleans’ Resilience and Major Events Ahead

Cindy Mackin Shares Estes Park’s Winter Thrills

Mark Jaronski of Explore Georgia on FIFA World Cup 2026

Connecting Small Businesses to Global Tourism Markets: Nate Huff of Tourism Exchange

North Carolina’s Resilience: Wit Tuttell on Recovery and Tourism

Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
TRAINING & COMPETITION

Our emails to you has bounced travelmole.com Or You can change your email from your profile Setting Section

Your region selection will be saved in your cookie for future visits. Please enable your cookie for TravelMole.com so this dialog box will not come up again.

Price Based Country test mode enabled for testing United States (US). You should do tests on private browsing mode. Browse in private with Firefox, Chrome and Safari