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ARTICLE · 17 MARCH 2022

Prevention Of Access Clauses Revisited

Herbert Smith Freehills Kramer LLP
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In Corbin & King v AXA Insurance Plc [2022] EWHC 409 (Comm), the High Court considered the scope of insurance cover provided by a ‘prevention of access' extension for Covid-19 business interruption losses.

United KingdomInsurance
Greig Anderson
Greig Anderson
Antonia Pegden
Antonia Pegden
Sarah Irons
Sarah Irons

In Corbin & King v AXA Insurance Plc  [2022] EWHC 409 (Comm), the High Court considered the scope of insurance cover provided by a 'prevention of access' extension for Covid-19 business interruption losses. While the Divisional Court in the FCA Test Case concerning Covid-19 business interruption insurance had generally found that Prevention of Access clauses did not provide cover in these circumstances, the Court in this case was able to distinguish the clauses considered previously so that the wording in this case could be looked at afresh.

The Court found that Covid-19 was a "danger" and that the prevention of access clause in the case provided localised cover but one which was capable of extending to a disease such as Covid-19 if there were cases within the radius. Adopting the Supreme Court's approach to causation in the FCA Test Case, the prevention of access clause did provide cover for the business interruption losses suffered as a result of the pandemic.

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