COVID-19 Business Interruption Claims: Time is running out!

The Covid-19 pandemic, and the resulting restrictions imposed by the Government, led to widespread disruption to businesses around the United Kingdom. Although almost 6 years has now passed, many businesses are still dealing with the financial fallout from the Covid-19 pandemic, particularly those within the hospitality sector which suffered the brunt of the restrictions.

While some policyholders have successfully pursued Business Interruption claims against their insurers, there are many who have not yet made a claim. There are also policyholders who initially had their claim rejected by insurers, but who now may have a valid claim (and are not aware) as a result of the subsequent litigation on the matter.

Limitation

In England & Wales, breach of contract claims are typically subject to a six year limitation period. This means that most Covid-19 Business Interruption claims will be time-barred from March 2026 onwards. Limitation periods are strict and, once they expire, a policyholder will lose the right to pursue a claim entirely, regardless of its merits. This applies even in circumstances where an insurer previously rejected a claim or where no claim was made at all during the pandemic. Protective steps can be taken to stop time running for limitation purposes, but only if action is taken promptly. In short, if you think you may still have a Covid-19 Business Interruption claim, seek legal advice as soon as possible.

The Litigation continues

With limitation looming, Covid-19 Business Interruption litigation should be coming to an end. There are, however, a number of issues which remain outstanding and which will or may be subject to further litigation in the coming months. These include:

• Furlough: As the law currently stands, Furlough payments are to be deducted as a saving from an indemnity received from insurers for Covid-19 Business Interruption losses. However, this issue is being heard by the Supreme Court in the Gatwick Investment and Bath Racecourse claims on 11 and 12 February 2026. Edwin Coe are acting for the Gatwick Investment Appellants and further information on the Supreme Court hearing can be found here.

• Aggregation: Whilst there has already been litigation on this issue, there remains disputes over how policy limits/indemnity caps should apply in some policy wordings.

• At the Premises clauses: The court previously found that At the Premises clauses do respond to Covid-19 losses. However, the court provided limited explanation as to how a policyholder is to prove a case of Covid-19 at the premises at the relevant time and what discharges the burden of proof in that regard.

Edwin Coe has been at forefront in advancing claims on behalf of policyholders for Business Interruption losses suffered as a result of Covid-19. If you think your business may still have a claim then please contact Lauren Allan or our Covid-19 Business Interruption team and we can advise you on your available options.