Manchester-based law firm, Barings Law, has won a case against insurers on behalf of six businesses that suffered pandemic-related losses. The Manchester firm said Judge Richard Jacobs' ruling sheds light on the legal interpretation of at the premises disease cover.

The businesses represented by Barings Law include Kaizen Cuisine, My Time Fine Fair, Umberto's Restaurant, Hairlab, Muscleworks and Bodylines Fitness.

The judgment was delivered subsequent to a preliminary issue trial that took place from 24th April to 4th May 2023. It addresses various preliminary matters concerning policy interpretation. The judgment provides clarity on the triggering of policies and outlines how the ATP cases can meet the evidential burden of proof.

Iryna O’Reilly (pictured), Barings Law’s head of business interruption, said: “After facing numerous challenges in the interpretation of policy clauses pertaining to Covid-19 cases ‘at the premises’, Barings Law, in collaboration with Essex Court Chambers Counsel, Mr Jeffrey Grudder KC, and Mr Mubarak Waseem, has achieved a momentous victory.

“This remarkable triumph, being the second test case following the FCA test case in the Supreme Court, sets a precedent that will impact thousands of policyholders and small and medium-sized enterprise owners.”

Experts have cited the cases, known as The London International Exhibition Centre and others v Royal & Sun Alliance Insurance and others, as a significant milestone in legal history.

“Small businesses encounter numerous challenges when pursuing claims against insurers due to the devastating impact of Covid-19. These businesses have either closed down or faced stringent government restrictions, preventing them from fully recovering from the pandemic," O’Reilly added.

“Barings Law is proud to have played a significant role in this test case, advocating tirelessly for our clients and countless other businesses impacted by the pandemic. We commend the court's thorough analysis of the complex policy wordings and its commitment to establishing a precedent that will have far-reaching implications for the wider business community.

“The ruling in the Covid-19 business interruption test case marks a turning point in the pursuit of fair treatment for businesses grappling with the profound impact of the pandemic. Barings Law will rely on the precedent this ruling sets and will to continue driving positive outcomes for our clients and the wider community of affected businesses.”

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