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Supreme Court rules in favour of hospitality Covid business interruption losses

January 15, 2021

Today the Supreme Court handed down its judgment in the FCA test case. Lord Hamblen and Lord Leggatt give the main judgment with which Lord Reed agrees This substantially allows the FCA’s appeal and dismisses the Insurers’ appeals.

Richard Leedham, Partner at Mishcon de Reya who represents the Hiscox Action Group said: “We are glad that the Supreme Court has found that the vast majority of policyholders of non-property damage Business Interruption (BI) cover will have cover for their business interruption losses caused by the national response of Government to COVID-19.

“This includes most of the members of the Hiscox Action Group, whom we represented in the case, and RSA and now all QBE policyholders whom we represented at first instance through my partner Sonia Campbell and Hospitality Insurance Group Action.

“The Supreme Court has recognised that, just when this cover was needed most by thousands of UK businesses, insurers were wrong to argue that coverage was applicable only if there were narrow local restrictions, that they could deny claims because the  cover had not been intended to be provided and/ or because the interruption and therefore losses would have happened in any event.

The judgment should be a massive boost to all businesses reeling from a third lockdown who can now demand their claims are paid. The hope and expectation of our clients is that the claim adjustment process starts immediately and that insurers will not continue to cause further distress by further unnecessary delay.”

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Hospitality & Catering News: hospitality Covid business interruption – Supreme Court rules in favour of hospitality Covid business interruption losses – 15 January 2021 – Supreme Court rules in favour of hospitality Covid business interruption losses – hospitality Covid business interruption

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