UK Biz Interruption Ruling Unlikely To Stem Tide Of Litigation

In a new article, our Head of Insurance Litigation, Roger Franklin spoke to Law360 and gave his analysis of last Friday’s UK Supreme Court ruling that insurers are liable to compensate businesses forced to close due to the COVID-19 lockdowns.

Even though the UK Supreme Court ruled overwhelmingly in favour of policyholders in its landmark business interruption insurance decision Friday, lawyers say litigation over pandemic coverage is likely to continue amid fights over exactly how much insurers are willing to pay out.

The justices ruled in the test case that insurers were liable to compensate businesses forced to close due to the COVID-19 lockdowns for most of the policy wordings included in the case.

But lawyers say that because the ruling did not say how insurers should calculate losses, many anticipate more legal disputes this year over how much policyholders can claim on their policies.

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