Wed, 27 Aug 2025

Wed, 27 Aug 2025 Covid loss businesses take action against insurer

Insurance company Beazley says business interruption insurance does not cover a national pandemic.
Serina Russel's family-owned tattoo business, The Underground Tattoo Studios in Walsall, has been affected by the pandemic lockdown. Despite having business interruption insurance with Beazley Group, which costs £46 per month, the company refused to pay out. Ms. Russel is one of 69 small business owners who are now taking group legal action against Beazley. Ms. Russel's business was closed for 10 months due to government guidelines requiring a 2m distance from people while tattooing. She took out a bounce-back loan instead, which she is still paying back five years later. The experience was described as "traumatic" but the business survived thanks to its loyal client base. Lucy Foster, owner of the Lucy Foster Wellness Clinic in Tamworth, also had a training school in Birmingham that had to close due to the pandemic. She paid premiums for business interruption insurance with Beazley and said the lack of payout stalled the growth of her business. Ms. Foster took out a £25,000 bounce-back loan which she is still paying off. The small businesses are being represented by Birmingham-based solicitor Chris Guy, who claims that the wording of Beazley's policy covers for pandemic-related closures. However, people must lodge their complaints within six years from the incident occurring, meaning March 2026 is the deadline to do so. Ms. Russel and Ms. Foster are among thousands of business owners who may be eligible to claim but have not yet taken action. The case highlights the struggles faced by small businesses during the pandemic and the importance of clear policy wording in insurance contracts.
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