Covid-19 Business Interruption Insurance claims

Our Policyholder Disputes team specialises in insurance coverage and has been at the forefront of Covid-19 business interruption insurance litigation.

In recent years, we have provided guidance to numerous policyholders across various industries regarding their Covid-19 business interruption claims and have led many significant test cases in the English courts.

Does your business operate in one of the following sectors?

• Hospitality
• Retail
• Sports & Entertainment

These sectors were most severely affected by the UK government’s pandemic response, and in our experience are most likely to have a valid claim.

If you would like to get in touch with our Policyholder Disputes team to discuss your business or your clients Covid-19 Business Interruption claim, please get in touch with the team.

Time is Running Out

Although in most cases it is not too late to make a claim, most claims will become time-barred by March 2026, and there is now a limited window in which to prepare and pursue a claim against your insurer.  Get in touch with our team now for a free policy review.

Effects of the Covid-19 pandemic

The UK government’s response to the Covid-19 pandemic included some of the most extreme restrictions to be placed on UK businesses in modern times. Despite various forms of government financial support, businesses in all sectors, but particularly in hospitality, events, and retail, suffered existential losses as a result of a total or partial inability to trade for extended periods in 2020 and 2021.

Insurance Response

Numerous businesses that purchased business interruption coverage filed claims under the Infectious Disease or Prevention of Access clauses in their policies. Nonetheless, nearly all insurers denied these claims, contending that the coverage was never intended to address the extensive impacts of a pandemic.

In response to the insurers’ refusal to honour claims, the Financial Conduct Authority initiated a test case against eight insurers, incorporating a representative sample of 21 policy wordings.

In January 2021, the UK Supreme Court definitively ruled that the majority of the policy wordings examined in the FCA test case were indeed capable of responding to Covid-19 related business interruption losses, directing insurers to settle outstanding claims.

At the onset of its legal proceedings, the FCA estimated approximately 370,000 policyholders held policies potentially affected by the test case’s outcome. However, data released by the FCA in March 2023 indicates that, over two years post-conclusion of the test case, only 43,027 claims had been settled by insurers. Our observations reveal that as of 2025, many claims continue to remain unpaid.

Why do so many business interruption claims remain unpaid?

Many policyholders may simply have written off their losses and are unaware that they have a valid claim to pursue.

Others may have had claims declined for a number of reasons that were left untested by the FCA test case, including:

• Coverage of Loss of Rent for commercial landlords;
• Coverage of claims under ‘At the Premises’ Disease clauses;
• Coverage of claims under various forms of ‘Prevention of Access’ clause;
• Insurers’ liability to pay damages for additional losses flowing from late payment of claims.

Since March 2020, a series of further key test cases has clarified and extended the scope and application of business interruption cover. As a result, many businesses who had previously been informed that they did not have cover may in fact have significant payments available to them under their insurance policies.

There are also many claims which remain unresolved in respect of the correct amount payable under the policy, with disagreements arising over the length of the applicable indemnity period, the correct application of savings and trends clauses, and aggregation of losses caused by multiple government restrictions and/or at multiple premises.

Policyholders should now revisit their insurance policies to see if they have cover for business interruption losses. We can assist you in considering the issues and the scope of cover that could be available under your policy.

Our expertise with Covid-19 business interruption disputes

We are leading experts in business interruption coverage disputes. 

Head of Policyholder Disputes, Aaron Le Marquer, is a leading practitioner in the field and fellow partners such as James Breese have taken the lead in many key test cases in the English courts, including:

• Policyholders v China Taiping
• ​Stonegate v MS Amlin
• ​London International Exhibition Centre v RSA
• ​Liberty Retail Limited v Liberty Mutual
• Bath Racecourse & Others v Liberty Mutual

We have assisted businesses recover losses under the full range of ‘non-damage’ business interruption clauses, including:

• Notifiable Disease – ‘at the premises’
• Prevention of Access (non-damage)
• Non-Damage Denial of Access
• Action of Competent Authorities
• Loss of Attraction

How much is my claim worth?

In addition to advocating for our clients to establish coverage for their claims, we also offer expert advice and representation to accurately assess the true value of each claim.

The value of a claim is determined by the scale of the business and the losses incurred, alongside the terms and limits of the insurance policy. We have acted on claims ranging from £250,000 to over £100 million.

Our pivotal test cases have addressed both quantum and coverage issues, often resulting in recoveries that significantly exceed the insurers’ initial claim valuation. Typically, interest of up to 8% is applicable on losses, and in certain instances, additional losses attributable to the insurer’s unreasonable delay in processing the claim may also be recoverable.

We collaborate closely with leading forensic accountants specialising in policyholder claims to ensure that the full value of your claim is realised.

Get in touch

There are still many thousands of policyholders who are entitled to compensation for their business interruption losses from their insurers as a result of the pandemic. In most cases it is not too late to make a claim, but time is running out.

Please complete the enquiry form below to determine your business’s eligibility for a claim. After submitting your enquiry, a member of our Policyholder Disputes team will reach out to discuss the next steps.