Dozens of British business owners have launched a legal battle against an insurance company. They are fighting for claims that were denied after Covid-19 lockdowns forced them to close.
The dispute centers on “business interruption” insurance. Sixty-nine small business owners have filed a case against the London-based Bijley Group. They argue their policies should cover losses from government-mandated lockdowns.
Serena Russell, who runs a tattoo studio in Walsall, is one of them. Her family has been in the business for 27 years. She said she felt secure because of her insurance.
“When the pandemic spread and the country went into lockdown, I knew my business was insured. I was hoping to get compensated,” Russell said.
However, the Bijley Group refused the claims. The company states that its business interruption policies are not designed to cover a national lockdown.
Russell has paid £46 a month for insurance for 15 years. She feels betrayed by the refusal.
“The question is, why didn’t the insurance cover my business?” she told the BBC. “When you take out insurance, it doesn’t say it excludes a pandemic. You feel your business will be fully covered.”
Without the insurance payout, Russell was forced to take a government-backed “bounce back” loan. She is still paying it off five years later. Her studio was closed for ten months because it was impossible to follow social distancing rules while tattooing.
Lucy Foster, who runs a beauty clinic and training school in Staffordshire, had a similar experience. She also held a policy with Bijley. The non-payment halted her business expansion plans. She also had to take a £25,000 loan, which she is still repaying.
Their lawyer, Chris Guy, argues the policies do cover the situation.
“Legally, the insurance policy has enough words to cover the pandemic,” Guy said. “This was a shutdown due to the government denying access to property. Covid was an emergency. The government took action to close businesses. We believe the words in that insurance policy cover that.”
The legal window to file a claim remains open until March 2026. This is because UK law allows insurance claims to be filed for up to six years after the incident. The first national lockdown was announced in March 2020.
Key changes made for journalistic standards
Inverted Pyramid Structure: The most critical information (who, what, where, why) is presented first.
- Simplified Sentences: Complex sentences were broken down into shorter, clearer ones for better readability.
- Active Voice: Uses stronger, more direct language (e.g., “have launched a legal battle” instead of “have started a legal battle”).
- Logical Flow: Information is grouped by theme (the plaintiffs’ stories, the insurer’s position, the legal argument).
- Neutral Tone: The language is factual and unbiased, presenting both sides of the dispute (the businesses’ claims and the insurer’s position).
- Formatted Quotes: Quotes are introduced and attributed clearly to establish credibility.
- Clearer Language: Terms like “premium” were replaced with simpler words like “paid for insurance.” The legal reasoning was also explained in plainer language.
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