The tourism company which runs the UK’s highest man-made waterfall has joined the legal test case against insurers which have declined payouts for enterprises hammered by the coronavirus lockdown.
Dartmoor tourist attraction Canonteign Falls is now part of a class action brought by City watchdog the Financial Conduct Authority (FCA) and due to start in late July.
The case will look at the wording of policies and whether they should allow insurers to wriggle out of paying claims. It is expected to give firms clarity on their eligibility to claim business interruption (BI) insurance.
Canonteign Falls said that, along with many other South West businesses, it hopes the FCA’s test case will provide “a positive outcome”.
The firm which runs the picturesque tourist attraction, located on the edge of Dartmoor, said it is in dispute with its insurer NFU Mutual (NFU) about its BI insurance policy. BI insurance is a policy many businesses take out to insure against unforeseen events that affect the operation or closure of their business.
Canonteign Falls is one of many businesses in the South West that are seeking legal clarity on the extent to which such insurance cover applies in light of the disruption caused from the Coronavirus crisis.
The FCA has launched the test case on a sample of claims in a bid to get legal clarity on the situation. Hiscox and QBE are among 16 companies involved in the test case. NFU Mutual is not, however, but the FCA said other insurers will be affected by the test case and its conclusions.
In early July, the FCA plans to publish a comprehensive list of other insurers and many other BI policies in the market that it expects the test case to affect, based on firm submissions.
Chris Baylis, owner of Canonteign Falls said: “Insurers appear to be using a blanket strategy which involves a point blank refusal to pay out these claims without looking into individual cases and refusing any form of mediation.
“It seems it is a case of small businesses versus large insurance companies and therefore it is great that the FCA is taking the case against the insurers.”
Mr Baylis said insurance payouts could have proved to be a “financial lifeline” for some businesses and added: “The case will be a landmark lawsuit and hopefully will bring us the outcome we feel is justified.”
Canonteign Falls, which reopens on July 4, is home to England’s highest man-made waterfall and is an example of a Victorian folly set in 90 acres of ancient woodland.
The waterfalls descend for more than 70m through ferns and woodlands. At the base of the falls the woodland gives way to meadows and lakes. Canonteign Kitchen is open for takeaway pre-packed food and one-way systems are in place to ensure social distancing.
