The latest volley in a growing battle between insurers and policy-holders sees French insurance company Albingia saying it will challenge a court ruling to pay nearly half a million euros to five hotels for losses incurred during the lockdown.

The court decided the hotels’ claims over lost income was covered by their insurance policies, but the company argues that the policies do not cover hotel closures decreed by the government.

In June, insurer Axa settled with several hundred restaurant owners to cover a “substantial part” of their losses, because of the coronavirus lockdown, after it lost in court to Parisian restaurateur Stephane Manigold over losses.

The tourism sector in France employs around two million people and represents more than 7% of GDP, but the French insurers’ federation has said the around 60 billion euro coronavirus-related losses far exceed insurance companies’ ability to cover.