Home / International / Axa France offers BI settlement to restaurants
21 June 2021
Axa France has offered a €300 million ($472 million) settlement over business interruption cover to 15,000 restaurant owners affected by COVID-related trading restrictions “in the context of continuing judicial uncertainty”.
The proposed settlement is intended to cover an amount equivalent to 15% of catering turnover during public access restrictions announced on March 14 and October 29 last year, depending on contract duration and amount limits.
Axa says it remains convinced its contracts are clear and don’t cover collective administrative closures, but an amicable solution will allow restaurants to fully participate in the pandemic recovery.
“We regret the misunderstandings with some of our restaurant clients, especially given this sector was particularly hard hit during the sanitary crisis,” Axa France CEO Patrick Cohen said.
“As restaurants are finally allowed to welcome their customers again, we are taking this initiative so that everyone can look to the future and focus on the restart of economic activity.”
The settlement offer is expected to be open until September 30 and will be implemented around the country through 3000 tied agents and distribution partners with the support of Axa teams.
Axa lost a Paris court ruling last year related to restaurant cover, but in another case the Bordeaux Court of Appeal this month ruled in favour of the insurer.
Lockdowns reintroduced after a surge in COVID-19 cases are being eased across a number of European countries. France allowed restaurants, cafes and bars to start serving customers indoors with 50% capacity from June 9 and has lifted a curfew.