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COVID-19 Business Interruption Insurance – Welcome News for Policyholders, and Something for the Insurers

Although only 21 sample wordings were considered, the FCA estimates that some 700 types of policies issued by more than 60 different insurers to over 370,000 policyholders could be impacted by the judgment. Whilst the wording of any policy may be unique, the Court’s judgment will provide helpful guidance in determining and quantifying the indemnity provided by disease, prevention of access or hybrid extensions.

Business Interruption Insurance Claims – Understanding the Doctrine of Proximate Cause and the Principles of Concurrent Causes

Business interruption insurance is complex, both in terms of identifying the obligation to indemnify (that is the trigger for cover) as well as quantifying the amount of the indemnity (that is the covered financial loss). In this briefing note, we look at the obligation to indemnify. That obligation is triggered by establishing that the business interruption resulted from property damage that is insured and not excluded. Frequently, insurance policies will exclude property damage resulting from certain excluded perils. So to determine whether the damage is insured or excluded, how do we identify the peril or perils that caused the loss?