Hoteliers plead for Covid-19 business interruption insurance payouts
Battle lines have been drawn in a David and Goliath clash between distressed tourism and hospitality businesses and insurance giants over the non-payment of Covid-19 business interruption insurance claims.
But, on Wednesday, the owners of two hard-hit accommodation establishments brought home the “on the ground” impact of the issue during a webinar hosted by Insurance Claims Africa (ICA) together with the Tourism Business Council of South Africa (TBCSA).
They made an emotional appeal to short-term insurance companies such as Santam, Guardrisk, Hollard, Bryte and Old Mutual to payout. They warned that if a resolution or settlement is not reached, their businesses and possibly hundreds of others will close permanently and lead to massive job losses.
“We’re asking the insurers to please step up and do the right thing,” said William van der Riet, owner of the landmark Cathedral Peak Hotel in KwaZulu-Natal’s northern Drakensberg.
The hotel, which was established by his father 81 years ago, currently employs some 200 people. But he said it is now in a “dire financial position” in the wake of the impact of the Covid-19 pandemic, which has seen the hotel not being operational for just over three months.
“We took to social media at the end of last week to tell our story … We’ve been given the run-around for the last three months, with our insurers looking at every way [possible] not to pay. We have been paying them for all these years, and now, they’ve just slammed the door in our face,” he added.
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