Legal landmark could help Covid-hit businesses reclaim millions

Manchester-based law firm, Barings Law, has won a landmark ruling against insurers on behalf of businesses who suffered losses due to the pandemic.

On September 6, Barings achieved a favourable ruling in the Court of Appeal for six Business Interruption Claims (BIC), focusing on insurance policies that specifically included ‘at the premises’.

This groundbreaking ruling has set legal precedent and will affect potentially thousands of businesses and insurance companies with the same clauses who were not involved in the proceedings.

Barings Law Managing Director, Craig Cooper, said the decision represents another monumental victory for thousands of policyholders and small and medium-sized business owners.

He said: “Affected business owners have had to wait well over 12 months for confirmation of the approach to be taken towards policy construction following the decision of the High Court in their favour in 2023.

“The Court of Appeal has provided much needed certainty and clarity around how ‘at the premises’ claims arising out of the Covid-19 pandemic are to be assessed.”

He added: “The ruling clarified that the approach to understanding the insured risk and to applying the subsequent test of causation follows the same principles set by the Supreme Court in the FCA test case.”

Barings Law, an experienced firm in Business Interruption cases, was instrumental in the ongoing court proceedings, which were brought to the Court of Appeal by insurers, after the High Court ruled in favour of the policyholders in June last year.

Barings represented clients Kaizen Cuisine, My Time Fine Fair, Umberto’s Restaurant, Hairlab, Muscleworks, and Bodylines Fitness in the proceedings, bolstering the firm’s affected clients of barbers and hairdressers, guesthouses, retailers of non-essential goods, tattoo parlours and more.

Mr Cooper further explained the decision confirms that knowledge of the specific incidence of disease at the insured premises by the relevant authorities is not required to trigger cover, while also defining that ‘public authority’ incorporates all levels of local and national government.

He added: “The decision applies a common sense approach to determining what the policyholder would have reasonably understood the cover to provide when incepting the policy of insurance.

“Barings Law has fought tirelessly for this decision and will now assist all of its clients whose claims have been placed on hold pending the Court of Appeal decision.

“For most business owners, Covid-19 shutdowns were a once in a lifetime disruption, but it’s crucial that this setback doesn’t define their legacy or the future of their business.”