Recent Legal Developments In Business Interruption Insurance – Coverage Issues And Wider Implications Perhaps For The Middle East

The English High Court has recently handed down a judgement in a test case related to "Business Interruption" insurance in the context of the COVID19 pandemic, which provides an interesting angle in respect of coverage issues and general English law [insurance] contract interpretation. The Financial Conduct Authority v Arch and Others¹ essentially addressed the legal construction of business interruption policy provisions including the Extensions of coverage provisions related "Disease" clauses and the Exclusions, which the insureds had made claims against in light of the current COVID19 pandemic for losses arising from the Government actions  to curb spread of the virus. Twenty-one sample insurance coverage wordings were reviewed from eight UK insurance companies by the High Court as part of their technical legal analysis and contract construction to ascertain, whether and to what extent those coverage wordings would respond to claims made relating to the business