Legal News

Much-anticipated decision on the aggregation of coronavirus (COVID-19)-related business interruption losses (Stonegate v Insurers)

Published on: 07 November 2022
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Article summary

Insurance & Reinsurance analysis: This recent judgment related to claims brought by Stonegate Pub Company Ltd (‘Stonegate’) against its business interruption (BI) insurers (Insurers) in respect of losses related suffered during the coronavirus (COVID-19) pandemic. The two key ‘preliminary issues’ heard by the court were broadly decided in favour of the defendant Insurers. First, Stonegate sought to argue that it was entitled to make separate claims of up to £2.5m in respect of each of its roughly 760 venues. The Insurers by contrast asserted primarily that Stonegate’s losses should be aggregated as a ‘Single Business Interruption Loss’. Stonegate’s argument was rejected. Second, the court held that, to the extent that any government support (whether ‘furlough’ payments or Business Rates Relief) reduced Stonegate’s burden in respect of costs that would normally be payable out of its turnover, Stonegate was not entitled to claim an indemnity for the same amount. Stonegate has inevitably indicated that it will appeal...

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