UK nightclubs and restaurants and leisure and hospitality broker NDML have asked the Johnson Government to release Pool Re terrorism funds to support payment of business interruption claims related to the coronavirus outbreak.

NDML and the Night Time Industries Association (NTIA) say Pool Re has funding totalling more than £6.5 billion ($12.5 billion), excluding an unlimited Treasury guarantee that it receives in return for premiums paid.

NTIA includes owners and operators of nightclubs, restaurants, pubs, festivals and other venues that have been hard hit by shutdowns and social isolation measures driven by the COVID-19 pandemic.

“We believe it is the Government’s responsibility to work with Pool Re to support the insurance industry through these immediate challenging times,” NDML MD Simon Mabb and NTIA CEO Michael Kill says in an open letter to Chancellor of the Exchequer Rishi Sunak.

“We urge you to review the operation of Pool Re and allow its excess funds to be used to support insurers in paying out business interruption claims related to the coronavirus pandemic.”

They also call on the Government to provide a long-term insurance solution similar to Pool Re that could help insurers and clients during any similar future pandemics.

The letter says many insurers are not treating leisure and hospitality policyholders fairly over business interruption, damaging the night-time economy and the reputation of the insurance sector as a whole.

NDMA and NTIA acknowledge concerns over the crippling impact of paying out substantial sums but say an impasse has resulted from trying to find other solutions.

“Avoiding claims and remaining steadfastly unresponsive is not the answer,” Mr Mabb and Mr Kill say. “We’re living in uncertain times, but the industry needs clarity,”