Covid-19 Business Interruption

The Covid-19 pandemic, and the resulting measures imposed by the UK government, caused financial losses to businesses around the country who were unable to trade as normal.

As a result of the inability of businesses to trade as normal, policyholders made claims under their Business Interruption policies of insurance. Many insurers have, however, refused to pay out under these policies, arguing in many cases that the Business Interruption cover was not intended to respond to the measures imposed by the UK government.

What is the position now?

In January 2021 the Supreme Court handed down judgment in the FCA Test Case. Whilst many of the issues surrounding Covid-19 Business Interruption claims were resolved in the FCA Test Case, the Test Case only analysed a sample of clauses, and a number of crucial issues therefore remain in play. These issues include:

• multiple claims for short indemnity periods under infectious disease wordings
• claims under non-damage denial of access clauses (also known as NDDA clauses)
• claims for furlough payments deducted by insurers as savings in the calculation of the loss
• aggregation

Since the FCA Test Case, there have also been a number of further judgments on the matter, many of which have been decided in the favour of policyholders.

How we can help?

Over the past few years Edwin Coe has been at the forefront in advancing claims on behalf of policyholders for Business Interruption losses suffered as a result of Covid-19.

Key cases include acting for the owners and operators of a number of well-known restaurants and cafés in and around London in the successful case of Corbin & King Limited and others v Axa Insurance UK Plc [2022] EWHC 409 . Edwin Coe are also currently acting for a number of policyholders in group action claims which are making their way through the courts.

If your business was affected by the Covid-19 pandemic, and your have a potential or disputed claim for Business Interruption losses please contact our Covid-19 Business Interruption team and we can advise on your available options.