Many UK policyholders whose businesses suffered losses during the COVID-19 pandemic have received a welcome boost from the country’s High Court.
In mid-September the Court ruled that most ‘disease’ clauses in business’ insurance policies cover losses caused by a notifiable or infectious disease, in a test case brought by regulator the Financial Conduct Authority (FCA).
However, the Court found that only some ‘denial of access’ policies – which involve losses caused by government actions, advice or restrictions in response to a disease rather than losses caused by the disease itself – provide cover.
In an article for the International Bar Association, Katie Chandler gives her view on the multi-jurisdictional impact of the UK judgment. This article was first published for IBA Global Insight online news analysis, 13 October 2020.