Law firm Mishcon de Reya has lined up funding for a UK dentists business interruption class action against QBE, after also flagging plans to pursue the insurer on behalf of the hospitality industry.

The firm says it has received in-principle agreement from an “experienced litigation funder” and has called on dental practice owners to express interest by Friday next week in joining the potential claim.

“The issue for dentists is similar in many ways to that experienced by the other businesses whom we also advise,” Partner and Head of the Insurance Disputes Practice Sonia Campbell said.

“Dental practice owners responsibly insured themselves against the risk of financial losses, including from notifiable diseases and yet, just like those in other trades, soon learned that their claims have been rejected.”

The firm is separately pursuing QBE and London-based Aviva in a Hospitality Insurance Group Action (HIGA), calling last month for businesses to register their interest by last Friday.

Mishcon de Reya narrowed its hospitality focus to the companies after a review of more than 500 policies from a range of insurers. Policies were submitted by businesses whose cover was declined after they were hit by Government-mandated lockdowns to control the COVID-19 outbreak.

“We believe this is the best way to ensure some financial recompense for these policyholders following their sudden and enforced closure,” Ms Campbell said.

Mishcon de Reya is working with Jeffrey Gruder QC of Essex Court Chambers on the proposed cases.

QBE, which has declined to comment on the class actions, is one of eight insurers that will participate in a Financial Conduct Authority test case over business interruption policy wordings.

The insurer has advised the market its BI policies do not typically cover losses arising from COVID-19, but it has noted, in response to queries, that reinsurance would limit net UK claims cost to $US75 million ($107 million).