Various Eateries Trading Limited v Allianz Insurance Plc

Various Eateries Trading Limited v Allianz Insurance Plc

The initial outbreak of COVID-19 in Wuhan and the introduction into the UK were too remote to constitute a single occurrence for aggregation under the policy. The relevant occurrences for aggregation were the UK Government's actions and restrictions. Aggregation does not operate per insured location but collectively. Losses proximately caused by a covered event during the policy period are recoverable even if suffered after the period, subject to the maximum indemnity period.

Parties
Claimant/respondent: Various Eateries Trading Limited; Defendant/appellant: Allianz Insurance PLC
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed; cross-appeal dismissed; permission to appeal on additional grounds refused.
Legal Topics
Business Interruption Insurance, Policy Construction, Aggregation Clauses, COVID 19 Losses
Insurance Law Contract Law Business Interruption Insurance Policy Construction Aggregation Clauses COVID 19 Losses

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Parties

Various Eateries Trading Limited

Claimant/respondent

Allianz Insurance PLC

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether losses suffered by the claimant during the COVID-19 pandemic are subject to aggregation under the insurance policy's aggregation clause
  2. 2 Whether the aggregation clause applies per insured location or to all locations collectively
  3. 3 Whether government actions and subsequent restrictions constitute single occurrences for aggregation purposes

Ratio Decidendi

The initial outbreak of COVID-19 in Wuhan and the introduction into the UK were too remote to constitute a single occurrence for aggregation under the policy. The relevant occurrences for aggregation were the UK Government's actions and restrictions. Aggregation does not operate per insured location but collectively. Losses proximately caused by a covered event during the policy period are recoverable even if suffered after the period, subject to the maximum indemnity period.

Court Disposition

Appeal dismissed; cross-appeal dismissed; permission to appeal on additional grounds refused.

Orders

  • Allianz's appeal on aggregation dismissed
  • Various Eateries' cross-appeal on per location aggregation dismissed