Football clubs Arsenal and Liverpool ‘settle’ major insurance dispute

Premier League clubs Arsenal FC and Liverpool FC have agreed to settle their lawsuit against some of the country’s biggest insurers, it has been reported.

The two clubs were among Aston Villa, West Ham, Tottenham Hotspur and Brighton and Hove Albion to pursue a pandemic-related business interruption (BI) claim against Allianz, Aviva, CNA Insurance, Zurich and Liberty in 2022.

The basis of the claim was formed 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.

While the legal dispute was set to go to trial in 2025, Tottenham Hotspur, West Ham United, Aston Villa and Brighton and Hove Albion settled their claims.

Law360 said this was negotiated by Paul Wordley, partner at solicitors Wordley Partnership, and had been told that a conclusion was reached in the first half of the year.

The publication said it was also told that Arsenal FC and Liverpool FC had now hammered out a settlement after recently striking an agreement with their insurers.

This was reportedly negotiated by Clifford Chance, which had been instructed to launch the class action lawsuit in 2022.

Other lawsuit

Another BI lawsuit, involving Allianz and Various Eateries, was also recently resolved.

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 also based its argument on the Supreme Court’s January 2021 ruling in the FCA’s BI test case.

Lee Watts, director of technical claims at Allianz UK, said in October 2024: ”We are pleased that the ongoing collaboration between Allianz and Various Eateries has now enabled final resolution of this claim.”