French Court Rules Insurance Company has to pay restaurant owner for two months’ worth of coronavirus-related revenue losses

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#axa #insurance #france
Le Bistrot d'a cote Flaubert" restaurant in France has won a court victory to claim compensation against coronavirus losses

A Paris court ruled on Friday that insurer AXA (AXAF.PA) must pay a restaurant owner two months’ worth of coronavirus-related revenue losses which could potentially open the door to a wave of similar litigations.

IN what is being touted as a landmark victory for business owners in France, suffering due to the effects of the coronavirus, the French court said the administrative decision to close the restaurant qualified for insurance cover as a business interruption loss.

If all Covid-19 related losses were deemed covered by insurance, French insurers would have pay out a minimum of €20 billion ($21.8 billion) per month, industry estimates calculated.

The case was brought by Stephane Manigold, who owns four Paris restaurants. He filed a lawsuit demanding AXA cover his operating losses after a government order in mid-March to close bars and restaurants to slow the spread of the coronavirus.

“This means that all companies with the same clause can appeal to their insurers,” Manigold’s lawyer, Anais Sauvagnac, said.

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AXA said a small number of its clients in the French hospitality sector were covered for Covid-19 related losses because they bought a special policy, most clients in the sector did not have that policy and did not quality for compensation.

Business owners in a similar position in Spain are said to be looking into the decision in case they also may be able to claim compensation.


#axa #insurance #france





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