A Ramsgate hair salon owner who had to shut his business for more than six months and move his family out of their home for five months due to a collapsed sewer pipe now faces a new battle after his insurer has refused to renew his policy.
In September 2023, Marcello Marino, who has owned his salon and home in West Cliff Road for more than 30 years, was told the building was not safe and the shop would have to be closed. Two weeks later Marcello, his wife, two girls and baby son had to leave their home on direction from Southern Water.
Southern Water said the sewer pipe section was private and therefore Marcello’s responsibility even though the water firm covered the cost of repairs. But Marcello disputed ownership of the pipe section saying Southern Water’s lining contractor confirmed the section is not a private asset but ‘a shared pipe’ that was the water company’s responsibility.
The family were eventually able to return to their flat, above the salon, in February but the business did not reopen until May 1.
A claim with Marcello’s insurers, Hiscox, has been ongoing and he has now received a letter to say the firm will not renew the cover when his current term ends next month.
The dad-of-three says he is disgusted at Hiscox’s treatment of a long-standing customer.
He said: “I’ve been insured with Hiscox for over 30 years (through a Salon Gold / Henry Seymour scheme) and never once made a claim for business interruption. But in 2023, after excavation works by Southern Water, caused significant damage to both my business and home, I filed a valid claim.
“That was three years ago. The claim remains unresolved, the process has been riddled with contradictions, and now—without warning—Hiscox has informed me they won’t be renewing my policy.
“The only reason given is that the claim is still ongoing. This has left me, my family and my small business in a state of uncertainty, financial strain, and risk.
“My business is down 30%—and despite their obligation, there’s been no real resolution or accountability from Hiscox.”
Marcello says the business interruption claim stemmed from the incident involving Southern Water, where the water firm initially accepted responsibility and agreed to cover the losses suffered but later changed stance and said it had to go through the insurance provider.
Marcello says he received no warning that the policy with Hiscox might be refused.
He has made a formal complaint to the insurance company and another with the Financial Ombudsman.
He said: “This situation has not only left me exposed as a small business owner, but I believe it raises serious concerns around fairness, transparency, and the treatment of customers—particularly under the Financial Conduct Authority’s ‘Treating Customers Fairly’ principle.”
Insurance claim, litigation and complaints
Hiscox says it is working to resolve the business interruption claim but say Marcello’s business no longer falls within its insurance underwriting acceptance criteria.
A spokesperson said: “After being notified of the escape of water claim, our claims team contacted Mr Marino about a routine claim validation. This is something that we do for all claims to check that they are covered by the customer’s insurance policy. Insurance cover for the claim has been confirmed (subject to the terms and conditions of the policy) and we are liaising with Mr Marino to get that sorted.
“Mr Marino considers Southern Water to be at fault for the escape of water and has indicated a desire to pursue a claim against Southern Water to recover the losses covered under the policy and any that are not.
“When an insurer agrees to pay a customer’s claim it acquires the right to step into the shoes of the customer and pursue legal claims against any third party which has caused the loss. The process is known as subrogation and is a common practice in the industry.
“We are discussing with Mr Marino the merits of pursuing a claim against Southern Water so we can’t disclose much more at this time, as those communications are subject to litigation privilege.
“We have received four complaints from Mr Marino; three relating to the claim made against the business insurance policy and one in relation to our renewal decision.
“One of Mr Marino’s complaints, which concerns his views on the handling of the claim, has been escalated to the Financial Ombudsman Service (FOS). The FOS considered Mr Marino’s complaint and made a finding of ‘not upheld’ which means that FOS dismissed Mr Marino’s complaint. Mr Marino is currently challenging that FOS decision.
“Mr Marino’s most recent complaint in relation to the renewal decision has only just been received and is therefore still under review by our Customer Relations Team.
“Regrettably Mr Marino’s business no longer falls within our insurance underwriting acceptance criteria and we have communicated to Mr Marino that unfortunately we are not able to offer insurance terms to his business going forwards. Again, as Mr Marino has indicated that he wishes to challenge that decision we can’t share too much more on that.
“Our records show Mr Marino has been a customer since 2021. As his business is insured through a scheme, it may be that Mr Marino has been insured through this scheme for some time, but that it was only transferred to Hiscox in more recent years.”
Marcello says he has responded to Hiscox formally refusing to accept the cancellation of his policy due to “no valid explanation or justification being provided.”
He says he believes they are stepping away from the policy because of the ongoing claim and he has challenged them, rather than it being a reason of risk or “criteria.”
The current policy expires in May.
This typo (which at the time of me making this comment can be found in the article) creates an entirely opposite meaning with regards the situation:
“… he has now received a letter to say the firm will now renew the cover when his current term ends next month. The dad-of-three says he is disgusted …”
Oh dear, I better correct that!
Poor guy. You pay your premiums all those years and then when you need them to pay out all you get is haggling and messing about. I hope it’s resolved soon so he can get on with his life. He’s a fabulous hair stylist.