After some recent work by our Insurance team, I am highlighting a couple of articles from the legal fraternity on the potential for insurance claims, especially where the Landlords cover includes ‘Business Interruption’. They also highlight that the Insurance industry will do what they can to prevent such claims but some high level legal experts are suggesting there is some potential here……

https://www.proplawblog.com/blog/insurance-and-rent-suspension

JOANNE WICKS QC OF WILBERFORCE CHAMBERS

Concluding comment:
“So, what should landlords and tenants be doing, right now? Tenants should be checking the terms of their leases and asking for a copy of the landlord’s insurance policy. They must surely have a right to see that if they cannot otherwise tell if they are obliged to pay rent for their premises. And landlords need to get their skates on, sharpish: they are likely to have notification obligations under their insurance policies. If they concentrate on pursuing their tenants for unpaid rent and do not notify in time, they risk being in the worst of all possible worlds: finding that the rent has indeed been suspended because the pandemic is an insured risk under the lease, but that they have prejudiced their insurance cover through failure to comply with the policy provisions.”

https://www.egi.co.uk/news/business-loss-buildings-insurance-and-covid-19/

Katie Byrne and Hannah Nix are senior associates and Tim Rayner is a partner at Irwin Mitchell LLP

Comment made:
“Some brokers have been advising their landlord clients to put in claims notifications under their policies and have suggested that a claim for loss of rent as a result of the pandemic may now be available”