Pub firm Fuller’s sues insurance giants Aviva and Liberty Mutual in fight over ‘business interruption’ claim
Fuller’s pubs has filed a lawsuit against insurance giants Aviva and Liberty Mutual in a dispute over a “business interruption” claim.
Fuller Smith & Turner confirmed to CityAM it is suing the two insurers “in relation to a claim under our business interruption insurance” but refused to comment further.
Fuller’s filed its claim against Liberty and Aviva on 2 February 2023 in the UK’s commercial court, public records show.
The pub group’s lawsuit follows a surge in business interruption claims in relation to the closure of hospitality businesses during Covid-19.
Insurers, reluctant to pay out policies, later faced a wave of lawsuits after Britain’s Supreme Court ruled in favour of policyholders in January 2021.
The case saw the Britain’s highest court rule in favour of the UK’s Financial Conduct Authority (FCA) in stating businesses are entitled to payouts for losses suffered due to closures during Covid-19.
Insurers have now paid out more than £1bn to companies that closed during the lockdowns, FCA figures show.
The court fights saw Axa forced to pay £4.4m to high-end restaurateur Corbin & King over the closure of eight of its restaurants, including The Wolseley in Mayfair and Colbert in Sloane Square.
Fuller’s currently owns around 400 pubs throughout Britain, having previously sold its brewing business to Japanese firm Asahi in 2019.
The London firm was forced to close all of its UK pubs after the British government introduced lockdown measures in 2020 in a bid to slow the spread of the coronavirus.
Fuller’s posted a £59.2m loss in the financial year ending on 27 March 2021due to the impact of the UK’s Covid restrictions on pub firm’s revenues.
The pub firm failed to respond to CityAM’s inquiries as to the value of its lawsuit against Aviva and Liberty.
Liberty Mutual said it does not comment on matters of litigation. Aviva was approached by CityAM for comment.