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Greggs has reportedly won a landmark ruling in the high court that supports its case to claim more than £150m on an insurance policy that was triggered by the Covid-19 pandemic.
According to The Times, a High Court judge has backed the majority of Greggs’ claims of business interruptions caused by the pandemic, which could see insurance provider Zurich liable for tens of millions more in coverage than it believed.
Greggs’ lawyers argued that each of its 1,778 UK stores suffered as a result of Covid-19 and its consequences, and has made a claim on Zurich estimated to be in excess of £150m.
Zurich contended that all of Greggs’ business interruption loss is attributable to a ‘single occurrence’ and is to be aggregated as one Single Business Interruption Loss (‘SBIL’) subject to a limit of liability of £2.5m, and that Zurich has discharged its obligation to indemnify Greggs on or around 19 January 2021.
In judgement, Mr Justice Butcher said: “May 2020 the approaches of the four administrations diverged. From that point, the various announcements/regulations applicable in the four nations cannot be regarded as ‘single occurrences’ even when they were to broadly have the same effect.
“Furthermore, there cannot be said to have been a ‘single occurrence’ constituted by all the governmental announcements/measures in each nation for the entire period after May 2020 until the end of the year. There were, instead, a number of different occurrences in each nation, by which new restrictions, which were of significance to Greggs’ business, were brought in at different times.”
Butcher added that he hopes the parties “will be able to agree as to the number” in regards to the number of business interruptions. However, if Greggs and Zurich are unable to agree on the number of occurrences, he would have to hear arguments.
