The UK High Court has confirmed that the formulations used by Zurich in insurance policies do not provide cover for business interruptions as a result of the Covid-19 outbreak. The British financial regulator FCA had turned to the court to clarify the questions.
The judgment is also supported by the limited number of claims for damages that Zurich UK has received in connection with business interruptions in the UK, the insurer said. The number of appeals regarding insurance coverage was “very low”.
But Zurich is not completely out yet. Because the High Court has examined the insurance clauses of eight insurance companies, as a spokesman said at the request of the AWP news agency. A total of 21 different clauses were examined carefully.
Corona costs slightly higher
And because Zurich also sells insurance through brokers whose clauses may not have passed the examination, costs could still arise for the Swiss group.
Zurich had booked 750 million dollars in the first half of the year for the costs that the pandemic is likely to cause throughout 2020. This amount is now “likely to turn out a little higher,” said the spokesman for AWP. However, a “material” amount is not to be expected.
Accordingly, the court ruling will “not have a material impact” on the 2020 result. (sda / awp)