Business interruption: infectious diseases extensions

The latest case to grapple with the coverage of business interruption insurance in response to the Covid-19 pandemic is that of the Irish High Court in Hyper Trust Ltd v FBD Insurance plc [2021] IEHC 78; [2021] Lloyd’s Rep IR Plus 6. This was the hearing of four test cases, representing some 1,300 others, based on FBD’s standard business interruption policy wording for public houses. The evidence showed that FBD had a long-standing relationship with the Vintners Federation of Ireland, a trade association representing Irish publicans, from which it may be assumed that the wording of the policies had been thought suitable for the industry – at least until the outbreak of the pandemic.

The relevant extension was somewhat differently worded from the clauses discussed by the UK Supreme Court in The Financial Conduct Authority v Arch Insurance (UK) Ltd [2021] UKSC 1; [2021] Lloyd’s Rep IR 63, although the judgment of McDonald J refers at various points to the conclusions reached by the Supreme Court.