Jurisdiction(s):
United Kingdom

Construction of closed-list disease clauses: ‘Plague’ not COVID-19; BI cover claim struck out—Rockliffe Hall v Travelers (High Court, England and Wales)

Published on: 01 March 2021

Published by a LexisNexis Insurance & Reinsurance expert

Legal News

Article summary

Rockliffe Hall Ltd v Travelers Insurance Company Ltd [2021] EWHC 412 (Comm)

What are the practical implications of this case?

The widely reported Supreme Court “test case” on business interruption insurance examined whether policies responded to the COVID‑19 pandemic under various disease clauses, where indemnity was triggered by the incidence or presence of a notifiable disease within a specified radius of the insured’s premises. The Supreme Court concluded that cover would attach where governmental action—such as a nationwide lockdown—was taken in reaction to cases of COVID‑19 that included at least one instance within the policy’s defined area. Consequently, even a solitary local case of COVID‑19 could be treated as the proximate cause of a policyholder’s pandemic losses. Importantly, though, the wordings analysed in the “test case” were tied to “notifiable” disease, thereby bringing COVID‑19 within scope from 5 March 2020, when it was designated notifiable under the Health Protection (Notification) Regulations 2010. The “test case” did not address clauses containing a closed list of diseases, that is, provisions enumerating particular diseases rather than employing a broader reference to notifiable disease. Notwithstanding this limitation, insurers have been met with a very substantial number of claims...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...