Loss of Rent/Business Interruption - Supreme Court Ruling

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    Loss of Rent/Business Interruption - Supreme Court Ruling

    With todays supreme court ruling on the Covid 19 business interruption test case.

    Would that imply that landlords could claim loss of rent due to compulsory closure from Covid 19 lockdown measures?

    Loss of Rent Clause wording below:
    Compulsory Closure
    We will indemnify You for Loss of Rent resulting from Interruption of or interference with the Business in consequence of compulsory closure by a public body authorised to prevent or restrict access to the Premises arising from:

    (a) discovery of a Notifiable Human Infectious or Contagious Disease at the Premises

    (b) foreign or deleterious matter in food or drink sold, supplied or provided at the Premises

    (c) the occurrence at the Premises of murder, manslaughter, suicide or rape

    (d) defective sanitation or the presence of vermin or pests. It is a condition precedent to

    Our liability that You:

    (i) comply with the requirements of the Health and Safety Commission Approved Code of Practice “The Prevention and Control of Legionellosis” (including Legionaires Disease) or any supplementary, replacement or amending Code of Practice

    (ii) keep records evidencing compliance for Our inspection or produce copies of such records immediately on request For the purpose of this cover the Maximum Indemnity Period is restated as 3 months.

    Very interesting question. I am of the opinion the cover is specific as to the business interruption ("BI") due to infectious disease AT THE PREMISES.such as an outbreak of salmonella at the staff kitchen causing some employees to fall ill
    In my opinion the intent of the policy was not to cover you for BI in the event of a pandemic


      I wrote the above late last night; this morning's The Times is saying that the FCA representing policyholders obtained an order which paves the way for thousands of businesses compelled to close to be able to file for BI. It may not affect every policy, depends on the policy wording, so not quite time to break out the bubbly, but much more hopeful that businesses that were compelled to close will be able to file successful BI claims. The insurance premiums in UK will go even further through the roof next year!


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