What is business interruption insurance?

Business interruption insurance provides cover when a company is unable to trade normally due to unforeseen circumstances. Traditional examples would include damage to the premises as a result of flooding, fire or burglary.

Effects of the Covid-19 pandemic

During the global lockdowns imposed by governments as a result of the Covid-19 pandemic, businesses were unable to trade as normal. Many brought insurance claims on the grounds that unforeseen circumstances had restricted their activity entirely or partly. Most insurers refused to pay out, arguing that the terms of insurance did not cover government measures in response to a pandemic, leading to litigation.

Our expertise and experience

Head of Policyholder Disputes, Aaron Le Marquer is a leading practitioner in the field, and has acted for many individuals and groups of policyholders in sectors affected most severely by the pandemic, including hospitality, retail, sports and entertainment.

Key cases include acting for the UK’s largest pub owner in Stonegate v MS Amlin, a £1.1bn claim that tested market-critical issues in Covid-19 business interruption coverage, including aggregation, causation and treatment of government support.

Aaron also represented a group of over 180 restaurant owners in Policyholders v China Taiping, which reopened the question of Covid-19 business interruption coverage under non-damage denial of access clauses.