Josephine Higgs KC has written a short case analysis for LexisNexis on Liberty Mutual Insurance Europe SE & Ors v Bath Racecourse Company Ltd & Ors [2025] EWCA Civ 153.
The Court of Appeal has given a further COVID-19 business interruption judgment on two important issues. First, whether each insured company under a composite policy was entitled to a separate limit of indemnity or, as insurers contended, the limit was an aggregate limit applicable to all insureds collectively. The Court of Appeal held in favour of insureds on this point. Second, and considered for the first time by the Court of Appeal, whether insureds must give credit for furlough payments received during the pandemic when calculating their business interruption losses. The Court of Appeal held, on the wording of the policies in this case, that they did. The court’s decision on both issues will have significant implications for many businesses seeking to claim COVID-19 business interruption losses.
