Cumbrian tourist businesses denied business interruption insurance following the Covid-19 lockdown have been thrown a lifeline this week, according to the body representing the tourist industry in the county.

Cumbria Tourism, the organisation representing tourism businesses throughout the county, "cautiously welcomed" this week's High Court ruling that a number of insurers refusing to cover losses caused by Covid-19 should have paid out.

Jim Walker, Cumbria Tourism's chairman, explained that insurance companies refusing to cover losses suffered as a result of coronavirus is a major issue for firms in the tourist sector - a vital cornerstone of the Cumbrian economy.

Data gathered this summer by Cumbria Tourism and partners, including the Federation of Small Businesses (FSB), revealed that 75 per cent of all tourism businesses had been unable to make an insurance claim, despite the fact that 93 per cent of these businesses had insurance cover for infectious diseases.

Mr Walker said Cumbria Tourism has been calling for action to address this.

“Cumbria Tourism has lobbied very hard to highlight this issue at a national level and I think this latest High Court ruling will be cautiously welcomed by those tourism operators who paid their business interruption insurance in good faith and feel they lost out at the beginning of the pandemic," he said.

“We hope the judgement will help to resolve the uncertainty being faced by policyholders."

However, Mr Walker stressed this was likely to be the first step in a long process.

"It is still unclear how many more policies it will ultimately affect," he said.

"We will certainly be keeping a close eye on this as it progresses.”

Keswick B&B Owner, Gary Lovatt, is the FSB’s national lead on the issue of business interruption insurance.

He described this week's ruling as a "win for small businesses", though with the caveat that this is "only possibly a partial win".

"There is still the possibility for either side in this case to go to the Supreme Court to appeal, but given that the High Court has very speedily given its judgement in this complex matter, we hope that insurance companies will not prolong the pain by taking this to appeal.

"Although the potential payments may be, in general, relatively small amounts, they could be fundamental to some businesses’ survival.”

Cumbria Tourism has since beginning of the pandemic called for the Government to provide robust support to the tourist industry.

Earlier this week, managing director Gill Haigh called for a more "consistent" approach across the UK to the application of Covid-19 guidelines to avoid tourist businesses in England being disadvantaged.