Greggs Plc v Zurich Insurance Plc

Greggs Plc v Zurich Insurance Plc

Each significant government measure restricting Greggs' business constituted a separate 'single occurrence' for aggregation under the policy; PRCM Costs sub-limits apply per SBIL; government support payments are to be deducted from losses before applying the SBIL limit.

Parties
Claimant: Greggs PLC; Defendant: Zurich Insurance PLC
Jurisdiction
England and Wales
Judgment Date
17 October 2022
Procedural Posture
Commercial Insurance Dispute / Expedited Trial of Preliminary Issues
Outcome
Preliminary issues determined in favour of Greggs on aggregation and PRCM Costs; Zurich's aggregation arguments rejected; government support deduction clarified.
Legal Topics
Business Interruption Insurance, Policy Construction, Aggregation Clauses, COVID 19 Losses, Government Support Payments
Insurance Law Contract Law Business Interruption Insurance Policy Construction Aggregation Clauses COVID 19 Losses Government Support Payments

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Parties

Greggs PLC

Claimant

Zurich Insurance PLC

Defendant

Procedural Posture

Commercial Insurance Dispute / Expedited Trial of Preliminary Issues

Legal Issues

  1. 1 What constitutes a 'single occurrence' for aggregation under the policy?
  2. 2 How many Covered Events occurred under the Disease, Prevention of Access, and Enforced Closure perils?
  3. 3 Are PRCM Costs subject to a per SBIL sub-limit or an aggregate limit?

Ratio Decidendi

Each significant government measure restricting Greggs' business constituted a separate 'single occurrence' for aggregation under the policy; PRCM Costs sub-limits apply per SBIL; government support payments are to be deducted from losses before applying the SBIL limit.

Court Disposition

Preliminary issues determined in favour of Greggs on aggregation and PRCM Costs; Zurich's aggregation arguments rejected; government support deduction clarified.

Orders

  • Each significant government measure is a separate 'single occurrence' for aggregation.
  • PRCM Costs sub-limits apply per SBIL, not in aggregate.