UK business interruption group claim against QBE secures funding

UK business interruption group claim against QBE secures funding | Insurance Business Australia

UK business interruption group claim against QBE secures funding

Mishcon de Reya LLP has received agreement in principle from an unnamed “experienced and well-capitalised” litigation funder to back a group claim involving dental practices insured by QBE.

The litigation offering is aimed at dentist policyholders whose coronavirus-related business interruption claims have been denied. Mishcon – which is also in the front lines of the separate legal battles being fought by the Hiscox Action Group and the Hospitality Insurance Group Action – described the dental group claim as a viable collective route to litigation for impacted practices.   

“The issue for dentists is similar in many ways to that experienced by the other businesses whom we also advise,” said partner Sonia Campbell, insurance disputes practice head at Mishcon. “Dental practice owners responsibly insured themselves against the risk of financial losses, including from notifiable diseases and yet, just like those in other trades, soon learned that their claims have been rejected.

“Practice owners provide an invaluable service to patients in their local communities. We hope by supporting dental practices we can help them restore their vital businesses to full health.”

Concerned businesses that wish to be included in the potential claim have until June 19 to indicate their interest.

“There is no cost to dental businesses to participate at this stage,” added Mishcon. “If a claim is progressed and is successful, the third-party funder is paid by taking an agreed deduction from any compensation secured at the end of the litigation.

“Most reassuringly, if the claim is unsuccessful, the litigation funder covers all legal expenses, so there is very limited financial risk to group members.”