London's ExCel Centre Wins Landmark Insurance Appeal for COVID-19 Losses
ExCel centre's owners secure victory in Court of Appeal against insurers over pandemic-related losses. The ruling could benefit thousands of businesses affected by COVID-19 lockdowns.
In a significant legal development, the owners of London's ExCel conference centre have emerged victorious in an appeal against insurers, including Allianz, over pandemic-related losses. This ruling, issued on September 6, 2024, could potentially benefit numerous other policyholders affected by COVID-19 lockdowns.
The case, initiated by London International Exhibition Centre Plc in 2022, sought approximately £16 million in business interruption losses caused by the pandemic. The legal action focused on "at the premises" clauses in insurance policies and their applicability to business closures during the crisis.
The High Court initially ruled in favor of the ExCel Centre's owners, aligning with the Supreme Court's 2021 decision on radius clauses. This precedent covered losses caused by diseases within a specific radius of a business. The Court of Appeal's dismissal of the insurers' challenge reinforces this interpretation.
Aaron Le Marquer, head of policyholder disputes at Stewarts law firm, representing the ExCel Centre, stated:
This decision could have far-reaching implications for businesses that suffered losses during the pandemic. Peter Hardy, a partner at Reed Smith law firm, described it as "a significant victory for policyholders," noting that it prevents different causation tests from applying based on policy wording.
The ExCel London, opened in 2000, played a crucial role during the pandemic. In April 2020, it was temporarily converted into the NHS Nightingale Hospital London, demonstrating its versatility and importance to the city. Covering 100 acres in the Royal Docks area, the venue typically hosts over 400 events annually, attracting more than 4 million visitors.
The center's significance extends beyond the pandemic. It was a key venue for the 2012 London Olympics and Paralympics, and has hosted major events like the G20 London Summit. With the UK's largest flexible auditorium and London's largest banqueting hall, ExCel contributes over £4.5 billion annually to London's economy.
As the legal landscape surrounding pandemic-related insurance claims continues to evolve, this ruling marks a pivotal moment for businesses seeking compensation for COVID-19 losses. The insurance industry will likely need to reassess its approach to similar claims in light of this decision.
