Businesses that win their fight for an insurance pay-out over losses caused by the Covid-19 lockdown could be dismayed by the amount of money they are given, experts have warned.

Thousands of firms desperate for cash are trying to squeeze funds out of insurers reluctant to cough up - but even those which are successful with a claim will then face a battle as providers try to hand over the minimum possible.

A swathe of companies have banded together to launch class action-style lawsuits against insurers including Hiscox, Aviva and QBE over their refusal to pay out on business interruption claims during the pandemic.

The insurers insist that many of their standard policies do not include cover for the current pandemic. Industry experts warned that even if insurers lose that argument in negotiations or in court, they are still likely to contest the size of any claims.

Insurance companies are likely to say that even without the lockdown, businesses such as pubs and restaurants would have suffered from a collapse in demand as panicked consumers stayed at home. This means claimants hoping for a pay-out which reflects their normal takings will be sorely disappointed.

Razzaq Ahmed, a lawyer at City firm Brown Rudnick said: “Even if a policyholder manages to persuade insurers that it has a good business interruption claim, it may still face recovery issues under the policy.”

Paul May, chairman and chief executive of insurance adviser Concordia Consultancy, agreed that some businesses may be surprised by how little they receive.

He said: “It's probably going to be a trickle because the insurers will almost certainly say that the budgets for all these businesses [on which payouts for lost profits would be based] would need to be revised post close-down.”

Adjusting budgets to factor in lower footfall and higher costs could significantly slash companies' predicted profits and therefore the payments they are likely to receive, he said.

Mr May said: “The figures, especially in the retail and hospitality sectors would be much, much lower."

The principle that policyholders should not be able to make a profit from insurance also means firms may not be compensated for costs they have been able to cut, such as by furloughing staff.

The Association of British Insurers said last month that its members expect to pay out £1.2bn because of Covid-19, including £900m in business interruption claims.