The Business Interruption claims team at Penningtons Manches Coope


The Business Interruption claims team at Penningtons Manches Cooper is advising a growing group of claimants how to ensure they maximise their recoveries from their insurers.

Despite landmark decisions from the High Court and then the Supreme Court, which ruled largely in favour of claimants, many policyholders have found their insurers have either rejected their claims or sought to delay for months and months. Sadly this has resulted in the closure of many businesses with many more facing ruin.

It is clear that many valid claims are being rejected and that without legal challenge some insurers will simply refuse to pay up. We are working with policyholders to hold insurers to their policies and make sure they receive the payments to which they are entitled.

Given the complexity of the policy wordings and the length of the judgments (which run to hundreds of pages) it is unsurprising that many policyholders feel powerless to challenge their insurers, hence the need for specialist legal representation.

To give an example of an area where we see scope for challenge, not all elements of the High Court decision were included in the appeal to the Supreme Court, for example the High Court’s findings in respect of policies which sought to restrict cover by reference to definitions of “emergency/danger/injury” which occur “in the vicinity” of the Premises.

The High Court’s more restrictive findings on coverage must now be considered in the light of the overall analysis of the Supreme Court which has now provided a broader basis of coverage for Covid-19 losses. The Supreme Court has broadly regarded that these losses, which have arisen out of at least one occurrence of an insured peril, may be recovered even if they were also independently caused by the overall effect of Covid-19 restrictions.

Penningtons Manches Cooper’s specialist insurance law and group action team is acting for a number of prospective claimants and can advise on the most cost-effective route to securing a recovery – please contact if you would like advice or to become part of the group or click