A key insurance provider to the legal industry pulled its professional indemnity cover for two major law firms after they started working on litigation against the insurance industry during the COVID lockdown, it has emerged.

Insurer QBE decided not to renew cover for U.K. law firms Fieldfisher and Mishcon de Reya after the firms attempted to build group claims to push for business interruption insurance payouts in the early stages of the pandemic in 2020, according to several people with knowledge of the matter. Normally, firms stay with an insurer for a number of years with policies renewing automatically at the end of the policy term.