More than 420 restaurants, hotels, and bars are to proceed with legal action against 10 insurers over unpaid Covid-related business disruption claims in the coming weeks.
The Restaurants Association of Ireland will look to progress the issue of unpaid disputed business interruption insurance, for its members, through the courts, having had minimal success in initial communications with the insurance firms.
Nearly a month ago, the RAI wrote to 12 insurers on behalf of 423 of its members, urging them to pay out on business interruption claims to cover trading losses brought about by the Covid-19 crisis.
The association originally gave insurers a seven-day window to reply and agree to make payments.
It said it would take legal action against any of the firms not willing to pay out on valid claims.
However, upon that deadline expiring, only one company, Hiscox Ireland, replied and agreed to pay cover and not challenge the claims.
Since then, QBE has also replied in a similar manner, meaning the threat of legal action over unpaid cover is currently hanging over 10 insurers.