A North-West Law Firm has achieved a landmark Court of Appeal ruling on behalf of businesses that suffered losses during the pandemic, securing a significant win against insurers.

On September 6th, Barings Law obtained a favorable verdict in the Court of Appeal for six Business Interruption Claims (BIC), focusing on insurance policies that included ‘at the premises’ coverage.

This groundbreaking decision establishes a legal precedent that will impact potentially thousands of businesses and insurers with similar policy clauses who were not part of the case.

Craig Cooper, Managing Director of Barings Law, described the ruling as a major triumph for numerous policyholders and small to medium-sized business owners.

“Businesses have endured a prolonged wait—over 12 months—for clarity on how policy interpretations should be approached following the High Court’s 2023 decision in their favor.

“The Court of Appeal has now provided essential certainty and clarity regarding the assessment of ‘at the premises’ claims related to the Covid-19 pandemic.

“This ruling confirms that the approach to understanding insured risks and applying the causation test adheres to the principles established by the Supreme Court in the FCA test case.”

As a leading firm in Business Interruption Cases, Barings Law played a crucial role in the proceedings, which were escalated to the Court of Appeal by insurers after the High Court’s favorable ruling for policyholders in June of the previous year.

Barings Law represented clients including Kaizen Cuisine Limited, My Time Fine Fair Limited, Umberto’s Restaurant Limited, Hairlab Limited, Muscleworks Limited, and Bodylines Fitness Limited. The firm’s clients span various sectors such as barbers, hairdressers, guesthouses, non-essential retailers, and tattoo parlours.

Mr. Cooper further explained that the decision clarifies that knowledge of a specific disease incidence at the insured premises by authorities is not necessary to trigger coverage. It also defines ‘public authority’ to include all levels of local and national government.

He added: “The ruling adopts a common-sense approach to what policyholders would have reasonably understood their coverage to entail when they purchased their insurance.

“Barings Law has fought relentlessly for this outcome and will now support all clients whose claims were pending due to the Court of Appeal’s decision.

“For many business owners, the Covid-19 shutdowns were an unprecedented disruption, but it’s vital that this setback does not overshadow their legacy or future prospects.

“We are committed to securing the compensation our clients deserve, after such a prolonged wait.”