Greggs launches £100m legal claim against Zurich - report
By Abigail Townsend
Date: Monday 01 Nov 2021
(Sharecast News) - Greggs has reportedly launched a £100m legal claim against Swiss insurer Zurich Insurance Group.
According to The Sunday Times, the London-listed baker believes it is due the payment to cover business interruption costs and expenses incurred when its stores were forced to close during lockdown.
The chain, which has around 2,000 shops across the UK, is seeking £100m or at least £50m, it was reported.
However, Zurich believes it is due just £2.5m, The Sunday Times said, citing filings lodged in the High Court last week.
Greggs has so far declined to comment. In a statement, Zurich told the newspaper it was "confident we have responded to this claim fairly and consistently in line with the test case last summer".
Last year, a group of companies that had business interruption cover through Hiscox were refused payouts after the insurer insisted that their policies did not cover pandemics.
To settle the dispute, Hiscox - along with a number of other major insurers - agreed to participate in a test case brought by the Financial Conduct Authority. The Supreme Court ruled in January that in most cases, insurers should pay out, and in June Hiscox agreed a settlement with around 400 companies.
As at 1130 GMT, shares in Greggs were ahead 1% at 3,078.0p.
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