Josephine Higgs KC acted for the policyholders in the recent appeal in International Entertainment Holdings v Allianz [2024] EWCA Civ 1281.

The policyholders claimed for Covid-19 business interruption losses pursuant to a clause which provided cover for “Any claim resulting from interruption of or interference with the Business as a direct result of an incident likely to endanger human life or property within 1 mile radius of the premises in consequence of which access to or use of the premises is prevented or hindered by any policing authority…”

At first instance, Jacobs J found that the clause did not provide cover for Covid-19 business interruption loss on the grounds that a case of Covid-19 did not, without more, amount to an “incident”, and that central government or the Secretary of State for Health was not a “policing authority”. The claim was therefore dismissed. The Claimants appealed, and Allianz cross-appealed on the issues concerning limits and corrective construction.

On appeal, the Court of Appeal held that the Secretary of State for Health was not a “policing authority” within the meaning of the clause, but that, if that was wrong, then a case of Covid-19 would constitute an “incident” within the meaning of the clause. Allianz’s cross-appeal was dismissed.

The judgment is likely to be of particular interest to those insurers and policyholders with “policing authority” or “incident” wording.

The Court of Appeal’s judgment can be read in full here.

Josephine Higgs KC was instructed by Joanna Grant and Anthony McGeough of Fenchurch Law LLP.