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

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…

(If you’re already a subscriber, please sign in here.)

Get access with a 14-day free trial

This article is usually available exclusively to subscribers.

Subscribe for full access - Take out a print and online or online only subscription

For a limited period, you can enjoy all the benefits of an online subscription free for 14 days. Sign up now to read this article in full and to enjoy unlimited access to premium online content, a digital edition of the latest issue, plus an online archive of back issues.

Also, as a registered user, you will be able to -

  • Access unlimited breaking industry news as it happens
  • Sign up to a choice of daily and weekly newsletters

Register to view free premium content