‘Non-Damage’ Business Interruption Insurance & the Recent Supreme Court's Decision

Introduction

Recent events have highlighted a number of uncertainties for both insured and insurers about the scope of traditional 'non-damage' business interruption insurance. Increasingly, these uncertainties are reflected at the reinsurance level.

The Supreme Court's decision in FCA v Arch addressed many of these issues in relation particularly to the losses stemming from the Covid 19 pandemic but that decision and the subsequent judicial rulings are of wider application with regard to the principles of causation, the calculation of quantum and, crucially, aggregation of losses.

Anyone seeking to make a claim or who writes, advises on, or handles claims under business interruption insurance and related reinsurance, should be aware of these developments and the current guidance from the Courts and the Regulator.

What You Will Learn

This webinar will cover the following:

• The Supreme Court's decision on 'non-damage' business interruption insurance, including disease and denial of access clauses, in FCA v Arch and its wider significance for insurance law
• The correct approach to issues of causation in relation to non-damage business interruption, the 'but for' test, the treatment of concurrent proximate causes in business interruption claims
• The latest on the construction of disease clauses including Various Policy Holders v China Taiping Insurance, Corbin & King v. Axa, Stonegate v. MS Amlin and the Court of Appeal’s decision in Various Eateries v. Allianz
• The latest on denial or prevention of access clauses including the 2024 High Court decisions in Entertainment Holdings v. Allianz and Hollywood Bowl v. Liberty Mutual
• The correct approach to the aggregation of non-damage BI losses as set out in
Stonegate v. MS Amlin and Corbin & King v. Axa
• Aggregation of losses at the reinsurance level including the High Court’s recent decisions on the meaning of a ‘catastrophe’ in relation of non-damage BI losses and the application of the hours clause to such losses in Unipol Re v. Covéa and Markel v. Gen Re
• The scope of cover under Additional Increased Cost of Working clauses
• The requirement for claimants to give credit for furlough payments and other government support
• The FCA's guidance on proving the presence of Covid 19 for the purposes of an insurance claim including the use of the 'Covid 19 Calculator' and Imperial College Data for this purpose

This webinar was recorded on 3rd June 2024

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