Over five years on from the start of the pandemic, Covid‑19 business interruption insurance claims continue to feature prominently in the courts of England and Wales. Since March 2020, 140 Covid‑19 business interruption insurance claims have been issued, of which 65% remain active. In 2025, more claims were resolved than in previous years, with seven settlements, one withdrawn case and one judgment. On one view, this increase in resolutions is to be expected with the passage of time. On another, the settlements reflect (a) the reducing number of issues in dispute across these claims, given the extent of litigation that has now been through the courts and arbitral tribunals, and (b) a general softening in the market this year in relation to these claims.
This softening is unsurprising given the sheer volume of litigation in this area. That litigation has provided helpful clarification for both sides of the market on difficult construction issues across a variety of policy wordings.
The end may be in sight for Covid‑19 business interruption insurance litigation, particularly with limitation becoming a focus in early 2026 and the Supreme Court’s forthcoming determination on the treatment of furlough payments in these claims. The start of 2026 is likely to be significant in that regard, after which we may begin to see these disputes tail off, or at least no longer require further litigation. However, readers with an eye for detail will appreciate that this is not the first time we have made that observation.
In the property damage and business interruption chapter of our annual Policyholder Review, partner James Breese and associate Zara Okereafor provide analysis on:
- Key business interruption claim developments during 2025
- A timeline of Covid‑19 and business interruption
- An update on recent property damage claims
- A look ahead to 2026
From ‘Die Hard’ to deadly hacks: when cyber threats get physical
Sam Ellerton, Head of Retail P&C Claims, and Jennifer Smith, Head of London Market Property at Lockton, give a broker’s perspective of the property damage and business interruption market.
"Back in 2007, few insurance professionals would have looked to Bruce Willis’s ‘Die Hard’ franchise for industry insight, perhaps save for the importance of purchasing broad active assailant and denial of access cover when looking to insure Nakatomi Plaza. With Bruce limbering up for his fourth and penultimate outing in ‘Live Free or Die Hard’ at the arguably over-ripe age of 52, some cynical detractors suggested that there were no threats left for John McClane to face. Why, John had already blown his way through an international band of terrorists, a treacherous US special forces unit, a Colombian drug lord and, latterly, a team of East German mercenaries. They said there were no threats left. They were wrong. In ‘Live Free or Die Hard’, John McClane had to save the world from… nerdy computer hackers."
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To read the full chapter and additional commentary on key developments and trends across various commercial lines, click the button below.
