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Government intervention needed with British insurance industry

The petition launched by Coventry Rugby last weekend to highlight the bad practices being demonstrated by the insurance industry is not just attracting signatures; companies from several different sectors of business are coming forward to tell us they are having similar issues in their insurer putting roadblocks in the way of their claim.

Coventry Rugby is having issues with our insurers refusing to honour the business disruption clauses which have seen the club’s cashflow dry to a trickle and put the organisation in serious danger.

We have had pubs, restaurants and fitness facilities approach us to tell us that we are not alone, and it is increasingly clear that – despite the government’s best efforts – companies across the sports, leisure, entertainment and hospitality sectors will be going out of business.

We have even been told of underwriters now actively seeking to retrospectively insert clauses regarding coronavirus and Covid-19 into existing policies!

This practice is outrageous on its own, but why is it important?

  • Business disruption insurance is crucial to maintain a company’s cashflow
  • This in turn means that suppliers can be paid
  • The company also then has a fund which can be used to kick-start the business and help return the economy to normal once the crisis is over

The government has been calling on banks to help business; the same attitude needs to apply to the insurance industry. The club is seeking legal opinions and will be pursuing its case vigorously.

This is not about Coventry Rugby, or rugby clubs as a whole. This is about an entire sector worth billions of pounds to the economy and which employs tens of thousands of people.

Don’t let the insurance industry decimate us. Sign the petition now at https://www.change.org/stop-insurance-destroying-events-leisure

Posted in News.