Sheffield landlords pray insurers pay up - as pubs could stay shut until May

Pubs could stay shut until May according to the latest reports, and Sheffield landlords are praying insurers pay up £1.2bn as ordered.
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Boozers may not reopen until the bank holiday on May 3, according to a national newspaper, when they would have been closed for six months.

But there is hope that a Supreme Court ruling ordering insurers to pay £1.2bn will provide a vital boost.

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Maurice Champeau, general manager of Crookes Social Club, said he was insured for up to £400,000 in lost earnings and a payout could be crucial to the survival of the business.

Crookes WMC manager Maurice Champeau.Crookes WMC manager Maurice Champeau.
Crookes WMC manager Maurice Champeau.

But he wasn’t holding his breath because ‘we know what insurance companies do.’

He added: “I wouldn’t be surprised if we stay closed until May, it’s just going to make things more difficult and I’ll have to borrow more money.

“But the insurance is great news. This is a possible lifeline for me and scores of landlords across Sheffield, loss of earnings is in a standard business insurance policy.

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“I haven’t heard from my insurers yet and I’ve no clue how much I might receive. But I spoke to my broker and they said although there is slightly different wording to the policy that was tested in the Supreme Court, their assumption is that the insurers will have to pay out.”

Last week, the Supreme Court ruled insurance firms must honour policies where money has been lost due to the Covid-19 pandemic.

The court ‘substantially allowed’ an appeal by the Financial Conduct Authority over businesses’ ability to claim for coronavirus-related disruption.

The landmark case is estimated to be worth £1.2 billion and could affect around 370,000 firms.

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At the time, Sheldon Mills, of the FCA, said: “Insurers should communicate directly and quickly with policyholders...tens of thousands of small firms and potentially hundreds of thousands of jobs are relying on this.”

Mr Champeau added: “I’m not counting on money coming in until they send it because we know what insurance companies do.”

The club has just received a £6,000 grant from the Chancellor to cover Lockdown 3. It would cover bills until March, the club would then have to survive on loans, he added. Borrowings already stand at £30,000.

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