UK-based Stonegate Pub Group has sued three insurance companies for the losses it incurred due to the Covid-19 pandemic and subsequent lockdowns.

The pub giant has filed a lawsuit against MS Amlin, Liberty Mutual Insurance Europe and Zurich Insurance at London’s High Court seeking £846m ($1.2bn) in total.

Backed by TDR Capital, the firm’s court filing said that the insurance policy covering business interruption and similar losses have been triggered. However, their liability is capped at £17.5m, most of which has already been paid.

Stonegate Pub Group was forced to shut all its 760 pubs, bars, and restaurants such as Slug & Lettuce, Walkabout and Be at One.

According to Stonegate Pub Group’s filing documents, MS Amlin holds 55% of the share of the policy, while Liberty Mutual and Zurich are responsible for 22.5% each.

The outbreak of the Covid-19 pandemic and efforts to contain the spread of the virus has affected the hospitality industry since March 2020.

Off late, the policies that covered losses due to business interruption have been the bone of contention between restaurant owners and insurance companies.

Last month, French insurer Axa offered €300m as settlement to cover the business interruption losses of French restaurant owners, which were forced to close due to the Covid-19 crisis.

Axa had previously turned down their claims citing a clause that excluded shutdowns because of a generalised health emergency.