COVID-19 Business Interruption Court Ruling – What it Means

October 6, 2020

businessman at desk with tablet, laptop, notebook, and judge gavel


An unprecedented court ruling regarding business interruption insurance claims impacted by COVID-19 ‘across the pond’ has many insurers and insureds anxiously awaiting any ripple effects to be felt in the U.S.   

The London Court has ruled in favor of nearly 370,000 small businesses across the United Kingdom, who held business interruption insurance and were forced to close due to the COVID-19 pandemic. The ruling entitles insurers to compensate businesses and that such compensation should return them to the position they would have been in had the pandemic never happened—subject to the limits of the policy. It is estimated the case could affect more than 60 insurers and 700 different types of policies because many insurance policies have similar wording.

It is currently unclear how this will affect the U.S Marketplace, as we are witnessing U.S. Insurers (such as Travelers) win rulings where the plaintiff failed to establish direct physical damage to their property. 

For more information regarding this landmark verdict, click here1. If you have questions about how the COVID-19 pandemic can affect your insurance coverage and possible claims, contact our TSIB team today. You may also download our Committed to Our Clients brochure for insights into how TSIB helps businesses grow and increase profitability.

Learn more about the TSIB Difference!

1 Cohn, Carolyn. "London Court Rules Some Insurers Should Not Have Denied Business Interruption Claims." Insurance Journal. Posted September 15, 2020. Retrieved October 6, 2020 from 

Topics: Claims, COVID-19, Construction Trends

Written by The TSIB Team

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