September 18, 2020

Volume X, Number 262

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September 15, 2020

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English Court Rules In Test Case

To follow up on our post yesterday, an English court ruled in the test case regarding coverage of business-interruption losses during the COVID-19 pandemic. We will follow up with a post addressing the particulars of the 160-page decision.

The Financial Conduct Authority stated that “the judgment will bring welcome news for many policyholders.” Its press release states:

The judgment says that most, but not all, of the disease clauses in the sample provide cover.  It also says that certain denial of access clauses in the sample provide cover, but this depends on the detailed wording of the clause and how the business was affected by the Government response to the pandemic, including for example whether the business was subject to a mandatory closure order and whether the business was ordered to close completely. The test case has also clarified that the Covid-19 pandemic and the Government and public response were a single cause of the covered loss, which is a key requirement for claims to be paid even if the policy provides cover.

The ruling did not award any specific recovery or declare that any insurer was liable across all policies. And of course, as we said yesterday, the decision involves the specific language in the sample policies that the court considered and did not involve whether there was “physical loss or damage” to property.

Copyright © 2020, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume X, Number 259

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About this Author

Lorelie S. Masters DC Partner Insurance Lawyer
Partner

A nationally recognized insurance coverage litigator, Lorie handles all aspects of complex, commercial litigation and arbitration.

Lorie has advised clients on a wide range of liability coverages, including insurance for environmental, employment, directors and officers, fiduciary, property damage, cyber, and other liabilities. She also handles various types of first-party property insurance claims, including claims under boiler and machinery, business-interruption, contingent business-interruption, extra expense, disability and other related coverages.

Lorie has handled and...

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Patrick McDermott Insurance Litigation Richmond VA
Counsel

Patrick counsels clients on all aspects of insurance and reinsurance coverage. He assists clients in obtaining appropriate coverage and represents clients in resolving disputes over coverage, including in litigation and arbitration.

During law school, Patrick served as a judicial intern for the Honorable Michael F. Urbanski in the US District Court for the Western District of Virginia and for the Honorable Ricardo M. Urbina of in US District Court for the District of Columbia.

804-788-8707
Associate *not admitted in DC

Jorge’s practice concentrates on complex insurance recovery disputes on behalf of corporate policyholders. He also counsels clients on risk management and insurance recovery strategy. Jorge has helped clients secure millions in insurance coverage under claims involving a wide variety of losses.

Jorge represents commercial and governmental policyholders in all types of complex insurance matters throughout all stages of the insurance process, from pre-purchase policy analysis and review through litigation and settlement of contested claims. Jorge has handled claims involving CGL, D...

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