If you thought you’d seen the last of the COVID 19 business interruption insurance litigation, think again. The Lloyd`s arm of WR Berkley has broken ranks to challenge the established principles.

COVID 19 resulted in billions of dollars paid out by insurers and reinsurers. It also generated multiple court cases in many countries (including Australia) where extensive judicial reviews delivered enforceable judgements on COVID 19 insurance liabilities.

These legal considerations were welcomed as a stabilising force for the entire insurance industry with no more litigation expected to emerge. The war was over.

But industry peace of mind has been threatened by the recent announcement that the Lloyd`s arm of WR Berkley in the UK is suing its reinsurers for US $90 million. Its upcoming COVID 19 claim revisits principles most would have believed had been settled once and for all.

Considering the heavyweights involved in this most influential insurance market, the litigation will be closely observed by insurers and reinsurers including those in Australia and New Zealand.

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