Related insights: Commercial and Insurance Recoveries

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BI Insurance claims: what happens next?

28 Jan 2021
Following a "leapfrog" appeal, the Supreme Court handed down a landmark judgment on 15 January 2021 on how non-damage business interruption insurance (BI) policies should respond to claims arising out of the COVID-19 pandemic. The judgment represents a significant victory for insureds: BI cover is available under most of the policies considered. It is important to flag, however, that most SMEs holding traditional BI policies which respond to claims arising out of physical loss or physical damage will not benefit from this judgment. We consider the implications of the judgment and what happens next.
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FCA test case: disruption in the new normal

15 Sep 2020
The judgment in the FCA test case concerning the operation of several non-damage business interruption insurance clauses has been handed down today. Groups representing policyholders are claiming victory, however, beyond the headlines is a complex and nuanced judgment. Nevertheless some broad themes can be discerned and insurers will want to consider these and re-assess their approach to all business interruption claims and not just those arising from COVID-19.
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FCA to seek Court clarity on BI insurance and impose customer protection measures

01 May 2020
FCA has announced today (1 May) its intention to obtain a court declaration on business interruption ("BI") insurance to resolve doubt for businesses who are facing uncertainty on their claims in the light of the ongoing problems resulting from COVID-19. Its decision comes in the light of continuing and widespread concerns about the lack of clarity and certainty for some customers making BI claims, and the basis on which some insurers are making their decisions on claims.

Avoiding a non-party costs claim - considerations for insurers

10 Jan 2020
In October 2019 the Supreme Court unanimously overturned the Court of Appeal's decision in Travelers Insurance Company Limited v XYZ [2019] UKSC 48 on non-party costs orders against insurers. We examine the background to the decision and consider how insurers can avoid non-party costs orders being made against them.

Climate change, extreme weather and property damage

03 Jan 2020
Weather-related damage to property is becoming more regular. Flood and coastal erosion risks are increasing, and will continue to do so, as a result of population growth and climate change. In addition to flooding, UK insurers are likely to see an increase in other weather-related property damage claims such as subsidence arising from periods of hot weather, and burst pipes arising from extreme cold. We examine the trends and the factors for insurers to consider when considering subrogated claims following settlement of property damage claims.

Indemnifying intentions

01 Jan 2020
Should insurers indemnify an insured on a reinstatement basis in a property damage claim even where the insured had taken no steps to reinstate eight years after the incident? This was the issue before the court in Sartex Quilts and Textiles Limited v Endurance Corporate Capital Limited [2019] EWHC 1103 (Comm). It held that an order for indemnification was appropriate and all circumstances, including events before and after the incident and up to the trial, were relevant to determining the basis of the indemnity.

Repairs on private land not a "use" of a vehicle

11 Dec 2019
When a car is being repaired on private land, can it be said that it is being "used" as a vehicle under the Road Traffic Act 1988 (RTA)? The Supreme Court held that it could not and that the motor insurer was not liable for third party property damage caused by the insured's negligent repairs to the vehicle. We examine the Supreme Court's decision in R&S Piling T/A Phoenix Engineering v UK Insurance Ltd [2019] UKSC 16 and look at what is on the horizon in 2020.