Policyholder victory in major business interruption insurance appeal

Adam Kramer KC and William Day acted for the London International Exhibition Centre, the policyholder in the lead of five appeals, in a major victory for policyholders seeking to recover losses from the COVID-19 pandemic from insurers under business interruption (‘BI’) policies.

The case was of market importance and likely to unlock coverage in thousands of unresolved BI insurance claims arising from the COVID-19 pandemic. The trial last year was one of The Lawyer’s Top 20 Cases of 2023 and this year’s appeal was one of The Lawyer’s Top 10 Appeals of 2024.

The dispute concerns whether the approach to proximate causation established for ‘radius’ disease cover in BI insurance – established by the Supreme Court in the initial FCA Test Case – equally applies to ‘premises’ disease cover. Jacobs J held that it did, and Males, Popplewell and Andrews LJJ upheld that decision in a robust joint judgment handed down this morning.

The judgment is London International Exhibition Centre plc v Allianz Insurance Plc [2024] EWCA Civ 1026 and can be read here. It is not yet known whether insurers will seek to appeal further to the UK Supreme Court.

A second trial in the proceedings concerned with quantum is listed for October of this year.

Adam and Will are instructed by a team led by Aaron Le Marquer and James Breese at Stewarts Law.