The owners of London’s ExCel conference centre have won an appeal brought by insurers over pandemic-related losses which establishes a precedent for policyholders seeking COVID-19 related compensation and highlights the importance of clear and precise policy wording.

The Court of Appeal handed down its decision in London International Exhibition Centre Plc v Allianz Insurance Plc & Ors[2024] EWCA Civ 1026 and in a unanimous judgment, Lord Justice Males, Lord Justice Popplewell and Lady Justice Andrews affirmed the policyholder friendly decision of Mr Justice Jacobs.

Lawyers involved in the Court of Appeal case believe the ruling could help thousands of other policyholders. London International Exhibition Centre Plc took legal action at London’s High Court in 2022 over business interruption losses caused by the COVID-19 pandemic, claiming around £16 million  under its insurance policy.

The test case concerned “at the premises” clauses in various insurance policies and whether the closure of businesses was covered.

The High Court ruled in favour of the ExCel Centre’s owners that the Supreme Court’s 2021 ruling on radius clauses – which cover losses caused by diseases being within a specific radius of the business – also applied to at the premises cover.

Allianz and fellow insurers Aviva, Chubb and Zurich had challenged that ruling at the Court of Appeal.

Law firm Stewarts, which represented the owners of the ExCel Centre, said the ruling was a major win for policyholders. Aaron Le Marquer, head of policyholder disputes at Stewarts, said: “This ruling confirms that thousands of businesses affected by the COVID lockdowns who have not yet had a payout from their insurers may now be able to pursue a claim.”

The court said any differences between radius and “at the premises” clauses did not materially affect the nature of the causal link which had to be proved except that in the case of “at the premises” clauses the occurrence of the disease must be at the premises themselves and not within the specified distance from them.

The Court of Appeal went on the hold that it was unnecessary for the infection at the premises to have been reported to or known about by the relevant authorities.

A spokesperson for Allianz said it was reviewing the ruling’s implications.

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