In Law360, Partner Dan Healy Shares Insurance Policy Takeaways From UK Lockdown Loss Ruling

In an article published in Law360’s Expert Analysis section, partner Dan Healy examined a recent ruling by a London court that addressed an unusual reinsurance dispute concerning coverage for the initial COVID-19 lockdown.

The March 22 article, entitled “Insurance Policy Takeaways From UK Lockdown Loss Ruling,” focused on the Feb. 9 decision by the High Court of Justice of England and Wales to allow insurers to make claims under reinsurance contracts for business interruption losses claimed under the pandemic.

“The decision is uncommon, in part because reinsurance disputes in England are most often decided in confidential arbitration, not in public courtrooms,” Healy wrote.

The article noted that the reinsurance companies appealed from arbitration rulings that required them to provide coverage to their insureds, namely the insurance companies.

“The key issues included whether the rise in COVID-19 cases leading up to the issuance of a lockdown order were a covered catastrophe, and, if yes, whether the so-called hours clause limited the recovery after the order to a set number of hours’ worth of loss,” Healy explained. “It is important for policyholders to keep in mind how the insurance companies argued for coverage and, even if some of the words differ, the concepts they relied up on in obtaining reinsurance coverage.”

Read the full article here.