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18th January 2021

Landmark ruling on insurance a boost to pubs and brewers

BBPA welcomes UK Supreme Court judgment meaning insurers will have to pay out on business interruption insurance

The British Beer & Pub Association (BBPA), the leading trade association representing brewers and pubs, has today welcomed the UK Supreme Court’s judgement that insurers will have to payout on business interruption insurance.

The BBPA has been very vocal and public in its support for the case to make insurers payout, which was led by the Financial Conduct Authority.

A BBPA member survey back in May 2020 found that 56% of sector businesses had application for Business Interruption cover rejected.

Separate research from the British Institute of Innkeepers in the same period found that just 3% of pub businesses had been successful in receiving a Business Interruption insurance claim.

Emma McClarkin, Chief Executive of the British Beer & Pub Association, said:

“This landmark ruling is great news for pubs and brewers who hadn’t received payouts on Business Interruption insurance thus far. It is a glimmer of hope in what is an incredibly tough time for our sector.

“The lack of payouts over insurance claims has added to the terrible woes and uncertainty our sector has faced over the last 10 months. It is why the BBPA backed the FCA in its campaign to resolve the issue.

“While our sector is far from out the woods yet, this announcement helps resolve some of the uncertainty it has faced on insurance cover and is warmly welcome.”

Press release from BBPA