Informative Note

Coronavirus: Business interruption insurance and COVID-19

08/02/2021
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The judgment of the United Kingdom Supreme Court

In the initial phase of the COVID-19 pandemic – March 2020 – the large number of different clauses circulating in the business interruption insurance market became apparent. This COVID-19 situation created enormous uncertainty as to the interpretation of these clauses and their possible activation by small and medium-sized enterprises (“SMEs”), which had begun to suffer significant losses. The discussion reached a global scale, but in the UK, the case went even further.

The Supreme Court held that it was sufficient for the policyholder to demonstrate that, at the time of the government measure in question, there was at least one case of COVID-19 within the required proximity.

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PLMJ has created a multidisciplinary team dedicated to analysing the legal and operational challenges that businesses are facing. Our team’s mission is work hand-in-hand with our clients to find the best solutions to mitigate the risks and to relieve some of the pressure they are under.

We have created a Coronavirus Hub to share practical information to help mitigate the risks for companies in Portugal.

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