Greggs in High Court bid to secure business interruption payout
Bakery chain Greggs has filed papers with the High Court claiming insurer Zurich owes it some £100m in business interruption insurance, following the forced closure of branches during the Covid-19 pandemic.
But, despite the claims of the high street favourite, Zurich believes it is due a pay out of just £2.5m, according to reports in The Sunday Times.
A spokesperson for Zurich said: "We are aware of High Court proceedings in relation to our client Greggs. Zurich is confident we have responded to this claim fairly and consistently with the test case brought against the insurance industry last summer."
The test case was brought forward after insurers claimed most business interruption policies, would not cover closures mandated by government due to the pandemic.
It escalated to the Supreme Court, which found in a test case that certain types of policy should pay out for Covid disruption.
However, hospitality operators have since accused insurers of "dragging their heels" over payments with many pursuing further legal action over the issue.
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