Conference centre owner London International Exhibition Centre and restaurant chain Pizza Express Group are among a group of businesses seeking further guidance on claims under business interruption insurance arising from the Covid-19 pandemic.
In the first few months of the pandemic, insurers and business policyholders clashed over BII, which some insurers claimed should not apply to pandemics.
This led to a test case via videoconference which was decided, in a Supreme Court ruling almost two years ago, mostly in the favour of the regulator and policyholders.
At the time, it was hailed as one of the most important insurance test cases in decades. And while it addressed a large number of issues, insurers and policyholders are still seeking guidance on some points.
One of them is an “at the premises” or ATP clause of some BII policies. This clause triggers the indemnity if there is an incident on the premises of the insured’s business.
Lawyers for policyholders and insurers are seeking guidance on whether a case of Covid in the “vicinity” or “region” of the premises is enough, and whether cases of Covid in January and February 2020 can be considered.
The High Court is in the process of separating issues and joining cases through case management conferences, with hearings expected in the spring of 2023.
The London International Exhibition Centre case relates to the company’s ExCeL Centre in east London, one of the largest exhibition centres in the country. Its claim is for around £15m, according to court papers.
Pizza Express is understood to have a claim that is potentially worth in excess of £178m.
Also seeking resolution on the ATP point is salon chain Hairlab, with a claim understood to be worth around £800,000, and food company Kaizen Cuisine, with a claim understood to be worth around £150,000.
