Analysis

Local Leicester lockdown could prove ‘difficult for insurers’ defending rejected BI claims

By 2020-07-03T16:11:00

Leicester

Business interruption policies triggered by Covid cases at the insured premises, or within a defined radius, may come under closer scrutiny as city-centric lockdown confirms the local impact of the pandemic

According to the defence documentation submitted to the FCA for use in its upcoming test case, some insurers – such as Ecclesiastical and MS Amlin – have rejected business interruption (BI) claims on the basis that Covid-19 is a pandemic, affecting the UK and the world, therefore the outbreak does not constitute as a single local occurrence, or incident within a specified radius - this, in turn, means that Covid-19 is not considered an insured peril.

But, could this line of thinking suddenly come under further scrutiny following the government placing Leicestershire in a localised coronavirus lockdown from 29 June, in response to a surge of Covid-19 cases?

Read more…

You need to register to continue reading the rest of this article and more for free.
(If you’re already registered, please sign in here.)

REGISTER NOW FOR FREE

We’re glad you’ve chosen Insurance Times as your source for industry news and hope you’ve been enjoying reading articles from our award-winning team of journalists.

Gain access to more of our exclusive, breaking stories, interviews and news analysis as it happens. Registering is quick, easy, free, and will also have the additional benefits:

  • Uncover Secrets: Dive deep with exclusive annual reports, fueled by expert insights.
  • News That Matters: Award-winning coverage & analysis, delivered to your inbox.
  • Stay Ahead, Your Way: Daily or weekly - choose your news rhythm.
  • Own Your Learning: Curate your knowledge with a personalized library.

Register for FREE now and Keep Reading

Stay on top of the insurance game with our subscription! Get unlimited access to over 80,000 articles, in-depth analysis, exclusive reports by industry experts, and our Five-Star rating system to compare companies and find the best fit for your business needs - view subscription options.