Upmarket handbag-maker Radley has resorted to legal action to force insurer Aviva to pay Covid-19 compensation.
Radley has joined Hospitality Insurance Group Action (Higa), a class action involving mainly hotels, bars and cafés, which believes the wording of Aviva’s policy makes the insurer liable.
Higa’s next move depends on the verdict in a High Court case brought by the Financial Conduct Authority on behalf of 350,000 mostly small businesses.
Radley, which sells shoes and accessories as well as bags, expects a £30m hit from the pandemic. Its policy with Aviva includes cover for losses suffered from notifiable diseases, enforced closure and prevention of access to insured premises. “We are simply asking Aviva to do the right thing,” said chief executive Justin Stead.