Allianz issues update on long running BI lawsuit

Allianz and Various Eateries have settled a long running business interruption (BI) lawsuit.

The insurer confirmed to Insurance Times that a resolution had been found after several failed appeals by both parties.

Various Eateries brought action against Allianz in 2021 over the payment of claims related to losses because of lockdowns during the Covid-19 pandemic.

The restaurant operator based its arguement on the Supreme Court’s January 2021 ruling in the FCA’s BI test case, which ruled that insurers are liable for BI losses in most cases, particularly when a policy offers cover for closure because of an outbreak of infectious disease.

Various Eateries said in its lawsuit that each lockdown and set of restrictions should be classed as separate claim events, with it also feeling that there was no aggregation under the policy as there was no single occurrence with which the loss was connected.

However, Allianz argued that all of Various Eateries’ BI loss suffered as a result of the Covid-19 pandemic were to be aggregated as a single limit.

Settlement

At first instance, a judge rejected Various Eateries’ primary case of no aggregation, as well as Allianz’s main argument that there was a single occurrence with which all of the loss was connected.

And in January 2024, the Court of Appeal also dismissed cases pleaded by both parties as to how Covid-related BI losses should be aggregated.

However, in a statement sent to Insurance Times, Allianz confirmed that the lawsuit had now been brought to a close.

Lee Watts, director of technical claims at Allianz UK, said: ”We are pleased that the ongoing collaboration between Allianz and Various Eateries has now enabled final resolution of this claim.”