Coronavirus (COVID-19)—business interruption insurance [Archived]
Coronavirus (COVID-19)—business interruption insurance [Archived]

The following Insurance & Reinsurance practice note provides comprehensive and up to date legal information covering:

  • Coronavirus (COVID-19)—business interruption insurance [Archived]
  • Property and business interruption insurance
  • Business interruption insurance—physical damage trigger
  • Contingent business interruption insurance
  • Coronavirus—business interruption insurance litigation
  • FCA test case—validity of non-damage business interruption claims
  • FCA test case—causation and insured perils
  • FCA test case—wide area perils
  • FCA test case—key themes on policy construction
  • ‘Occurrence’ v ‘event’, ‘following’, and ‘manifested’
  • More...

ARCHIVED: This Practice Note covers the first instance decision of The Financial Conduct Authority v Arch Insurance. It has been archived and it is not maintained. For information concerning coronavirus (COVID-19) and business interruption insurance, including consideration of The Financial Conduct Authority v Arch Insurance, see Practice Note: Coronavirus (COVID-19)—FCA non-damage business interruption insurance test case.

STOP PRESS: The decision of The Financial Conduct Authority v Arch Insurance, was handed down on 15 January 2021. See: LNB News 15/01/2021 107.

Business interruption insurance has typically been sold as an extension to commercial property policies. Most business interruption cover requires that any such losses result from damage to insured property. There is, however, no standard form of business interruption insurance and some insurers offered policies with additional triggers for business interruption cover, such as denial of access or closure by a public authority.

Many businesses have sought to claim under their business interruption insurance for coronavirus (COVID-19) losses but few have been indemnified. Aggrieved policyholders were vocal and the mainstream press critical of the insurance industry’s response. Both have, however, overlooked the complex legal issues that have arisen in the context of coronavirus business interruption, which, unlike conventional perils such as fire or flood, cannot so easily be located at a particular place and time. These matters were clarified by the first instance decision in the FCA test

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