BRUSHFIELD LTD (T/A THE CLARENCE HOTEL) V ARACHAS CORPORATE BROKERS LTD AND ANOTHER

[2021] IEHC 263, High Court of Ireland (Commercial), Mr Justice Denis McDonald, 19 April 2021

Insurance – Business interruption – Covid-19 – Disease extension – Access extension – Causation

Brushfield Ltd (BL) operated the Clarence Hotel, which included the Octagon Bar, on Wellington Quay in Dublin. The premises were closed on government advice issued on 15 March 2020. BL’s policy covered business interruption losses consequent on damage to its property, but there were two non-damage extensions providing cover for 12 weeks. The first was a murder, suicide or disease (MSDE) clause, in respect of “any business interruption insured by this section as a result of the occurrence of any of the following specified human infectious or human contagious diseases: … manifested by any person whilst at the premises or within a 25 mile radius of it …”. The listed diseases did not include Covid-19, but did refer to “Acute Encephalitis”. The MSDE clause referred also to: “The closing of the whole or part of the premises by order of the public authority as a result of a defect in the drains or other sanitary arrangements at the premises”. The second extension was a denial of access clause. This provided cover “for any loss insured by this section resulting from interruption of or interference with the business where access to your premises is restricted or hindered for more than 24 hours arising directly from … the actions taken by the police or any other statutory body in response to a danger or disturbance at your premises or within a 1 mile radius of your premises”. Excluded from this extension was restriction of access as a result of “notifiable diseases as detailed in the Murder suicide or disease cover”.