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According to AIG, as well as numerous other legal experts, 2021 is due to deliver a surge in covid litigation. AIG reports on the findings of the global risk management and insurance intermediary Gallagher, which quizzed claims management companies about their experiences.
The results reveal how thousands of UK organisations will face uncomfortable allegations about the way they’ve handled the virus. In fact a worrying 70% of claims management companies have already been sent claims relating to covid. 76% of those that hadn’t yet received any claims said they were fully expecting an increase. The research also predicts there’ll be a boom in litigation claims of around 40% through 2021 compared to previous years, with the increase wholly driven by ‘covid related incidents’.
The legal action will not just be brought for ‘safety violations and negligence’ but also be brought to court by employees who feel they were either over-worked, discriminated against, or dismissed unfairly. And there’s more trouble due thanks to shareholders and other interested parties who think businesses have made poor business decisions around covid.
UK businesses face a variety of covid claims, including workplace and premises safety violations and negligence, particularly around the shortage of PPE at the beginning of the pandemic. So far the claim management companies involved in the study have received claims around employees and customers catching covid on the premises, medical negligence, bad working conditions, and treatments for other medical problems that were delayed because of covid.
The sectors hardest hit appear to be the healthcare sector, public sector and hospitality industry, retailers, manufacturers, and even charities. The average claim value at the date the report was published was around £5,500 for employees and £7,500 for customers, to cover things like compensation for illness and related losses. But a successful negligence claim could see a business paying out a great deal more, and defending these cases in court will be expensive. It always is.
52% of the business leaders asked say they’re seriously concerned they’ll be sued in future by someone who says they caught covid on their premises. Google search data supports their concerns, with record highs in searches for things like ‘covid lawyer’ and ‘sue for covid’.
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