Business interruption insurance claims

The court has considered three claims in relation to insurance cover for business interruption losses in the context of the Covid-19 pandemic.

The claimants in the three cases (Stonegate, Greggs and Various Eateries) all operated in the hospitality industry and had various locations across the UK. In each case, the insurers did not dispute that the relevant policy had been triggered or that the relevant claimant had suffered business interruption losses. The dispute related to the extent of coverage and, in particular, whether the losses claimed constituted a “Single Business Interruption Loss” and should be aggregated.

The judgments will be an important reference point for policyholders looking at whether a policy limit applies for each loss or to the aggregated losses; seeking cover for the entirety of their indemnity period; and assessing whether any government support received by the insured should be taken into account, for the insurers’ benefit, when calculating any sums recoverable.

For further detail on the decisions in these cases, see this blog post published by our insurance team.