Carbis Bay Hotel Limited & Anor v American International Group Limited

Carbis Bay Hotel Limited & Anor v American International Group Limited

The defined term 'Disease' in the Policy is exhaustive and limits coverage under the Infectious Diseases extension to the 33 listed diseases, which does not include COVID-19. The exclusion for AIDS or AIDS-related conditions does not expand the scope of cover or create ambiguity. The ordinary and natural meaning of the Policy does not extend business interruption cover to COVID-19.

Parties
Claimant: Carbis Bay Hotel Limited; Claimant: Atlantic Bay Hotel Limited; Defendant: American International Group Limited
Jurisdiction
England and Wales
Judgment Date
05 September 2025
Procedural Posture
Part 8 Claim / Final Judgment
Outcome
Claim dismissed
Legal Topics
Business Interruption Insurance, Policy Interpretation, COVID 19 Coverage, Contra Proferentem, Redundancy in Contractual Terms
Insurance Law Contract Law Business Interruption Insurance Policy Interpretation COVID 19 Coverage Contra Proferentem Redundancy in Contractual Terms

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 20 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Carbis Bay Hotel Limited

Claimant

Atlantic Bay Hotel Limited

Claimant

American International Group Limited

Defendant

Procedural Posture

Part 8 Claim / Final Judgment

Legal Issues

  1. 1 Whether COVID-19 is covered under the 'Infectious Diseases' extension to the Business Interruption section of the Policy
  2. 2 Interpretation of the defined term 'Disease' in the Policy
  3. 3 Effect of the exclusion for AIDS or AIDS-related conditions

Ratio Decidendi

The defined term 'Disease' in the Policy is exhaustive and limits coverage under the Infectious Diseases extension to the 33 listed diseases, which does not include COVID-19. The exclusion for AIDS or AIDS-related conditions does not expand the scope of cover or create ambiguity. The ordinary and natural meaning of the Policy does not extend business interruption cover to COVID-19.

Court Disposition

Claim dismissed

Orders

  • The court declares that the word 'Disease' in the Infectious Diseases extension is limited to the specific diseases listed in the Policy definition and does not include COVID-19.
  • No indemnity is payable to the claimants for business interruption losses arising from COVID-19 under the Policy.