Meet the Northampton businessman taking on insurers refusing to payout coronavirus claims
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A Northampton businessman has become the figurehead of a campaign to get insurers to pay out to companies affected by the coronavirus lockdown.
The Pinnacle Climbing and Caving Centre managing director Simon Ager started by complaining about his insurance company, Hiscox, refusing to cover his losses.
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Hide AdNow he has the support of the MP, council leader, top lawyers and the Financial Conduct Authority as well as hundreds of other businesses in the same boat.
"It's a tiny role to play, I can't work in a hospital but I can help the economy to bounce back and hold people like Hiscox to account who refuse to support businesses," he said.
The Pinnacle has a policy with Hiscox with covers it for losses up to £100,000, and Mr Ager thought it would cover pandemics like Covid-19.
But despite Chancellor Rishi Sunak saying the Government's initial recommendation for people not to visit leisure businesses was enough to satisfy insurance claims, Mr Ager's broker warned him his policy may not pay out.
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Hide AdFollowing the forced closure on March 23, The Pinnacle managing director thought that would be enough, but he was soon informed by Hiscox that they still would not cover his losses.
Without that money, Mr Ager said he would struggle to top up his furloughed staff's wages and would put the climbing centre in jeopardy if the lockdown goes on indefinitely.
"As a small business we have done things that felt right, we've treated our staff rightly, and you would sort of expect a multi-billion-pound company like Hiscox would do the same," he said.
Hiscox's policy documents state it will cover financial losses for businesses unable to trade following 'an occurrence of any human infectious or human contagious disease'.
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Hide AdBut a spokesman for the insurance company said this is not triggered by the Government's lockdown but instead by something happening at the premises such as a murder, contagious disease or vermin issues.
"We understand that these are incredibly difficult times for businesses affected by Covid-19," they added.
"At Hiscox we strive to pay claims that are covered by the policies we issue fairly and quickly.
"Hiscox’s core business interruption wording does not cover the extraordinary circumstances the pandemic has caused. This is generally the position across the insurance industry."
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Hide AdAfter complaining to Hiscox, Mr Ager has been included in national articles about the issue alongside other business owners facing uncertain from their insurers.
More and more businesses are coming forward with similar claims, leading the Northampton businessman to set up an action group to put pressure on Hiscox.
Mr Ager said many lawyers have also contacted him to try to take the case on, with plenty claiming he is in the right, but he knows it would be very expensive to fight this in the courts.
He has also had support from Northampton South MP Andrew Lewer and Northampton Borough Council leader Jonathan Nunn.
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Hide AdWhile the FCA has told insurers to pay out claims 'as soon as possible' or explain themselves to the watchdog in an open letter to the industry.
The campaign has taken a toll on Mr Ager, with 20-hour days becoming common and less time spent with his young family, who he thought he might get to see more during the lockdown.
"I've toyed with taking a back seat but I feel a lot of frustration for businesses not able to fight this and we've got good traction," he said.
"It's the nice bits from staff or clients who say to get it sorted out and we're doing really well, or other companies saying we're doing great, makes me feel like it's right."