A South Cumbrian restaurateur believes the chances of getting an insurance payout for loss of business due to the coronavirus pandemic remain “slim” despite a recent High Court ruling.

The High Court has ruled a number of insurers which refused to cover business losses caused by the Covid-19 crisis should have paid out.

James Tasker - proprietor of the Lamplighter Dining Rooms, in Windermere - said he cautiously welcomed the ruling.

However, he said insurance companies were still likely to resist to the “maximum extent of their power” due to the sums of money involved if they had to cover all the policies of all the businesses affected.

The underwriters for James’ insurance, Pen Underwriting, has disputed his right for a payout.

James, who is also a director of the Lakes Hospitality Association, said: “I would class myself as an optimistic realist and say that the vast sums of money that the insurance companies will have to hand out as a result of this situation will not be easily given.

“The ruling is also only based on a number of excerpts from selected policies and is not exclusive to all with infectious diseases cover.”

Figures show that 75 per cent of tourism businesses surveyed by Cumbria Tourism and the Federation of Small Businesses have been unable to make an insurance claim, despite 93 per cent of them having insurance cover for losses caused by infectious diseases.

James added: “The point that saddens me the most, however, is if they are forced to pay out, what about all of the businesses that needed that money right at the beginning of all of this who paid their insurance in good faith and who now, through no fault of their own, are now bankrupt so any funds will literally be too little too late.”