Latest decision -Business Interruption Insurance Claims

The Court of Appeal has this week heard a further case in relation to the application and ability to claim on business interruption insurance during the Covid 19 pandemic.

The court heard 6 expedited test cases which centred on the clauses around -

“disease occurring ‘at the premises’ of the policyholder.”

The lead case being London International Exhibition Centre v RSA & Ors.(AKA ExCel)

The solicitors Journal has provided a resume of the decision handed down- the court dismissed insurers’ appeals on the issues of causation, knowledge and the relevance of the requirement for closure of the premises to be on the approval or advice of a medical officer of health. Lords Justice Males and Popplewell and Lady Justice Andrews confirmed businesses with an ‘at the premises’ disease clause in their policies are entitled to claim an indemnity for their loss of gross profit caused by the UK government’s response to the pandemic.

Stewarts, acting for ExCel, said: ‘Many policyholders who were previously denied cover may in fact have significant payments available to them under their insurance policies.’

Stewarts is also acting in Bath Racecourse & Ors v Liberty Mutual Insurance, due to be heard by the Court of Appeal in January 2025. It will determine whether insurers can deduct furlough—government payments for furloughed employees during lockdown—from Covid business insurance payouts. 

Although the pandemic and the dark days of 2020 now seem along  time ago the financial impact of that time is still felt in the hospitality sector and many operators felt badly let down by their insurers at that time, there may now be an opportunity to go back to the policies where claims were refused and recover compensation. However, every policy is different and each case will be looked at on its on facts so it is worth speaking with insurers and brokers if you think you may now fall within the criteria for a claim.