Business Interruption Insurance Policies – High Court rules against FBD Insurance - 5 February 2021

Cosgrove Gaynard Solicitors

Mr Justice Denis McDonald ruled in the High Court this morning that FBD Insurance are to compensate the policyholders who took court action following FBD’s refusal to provide indemnity under their policy of insurance regarding business disruption cover.

Mr Justice Denis McDonald ruled in the High Court this morning that FBD Insurance are to compensate the policyholders who took court action following FBD’s refusal to provide indemnity under their policy of insurance regarding business disruption cover.

FBD had taken the stance that the policy of insurance in question did not cover the disruption caused to businesses by the Covid-19 pandemic. FBD argued that it never provided cover for pandemics and that a policy covering such an event was never requested previously in this jurisdiction. The policy holders argued that they were entitled to be compensated for their consequential losses for what they considered to be an insurable risk.

The High Court disagreed with FBD’s stance and interpretation of its policy. Judge McDonald opined that cover is not lost where the closure of the business affected is prompted by a nationwide outbreak of a disease provided that the outbreak is within a 25-mile radius and is the reason for the closure of the affected business.

The decision this morning by Judge McDonald was eagerly awaited. His decision was deferred previously to allow parties make submissions to the Court in light of the recent UK Supreme Court Judgment on the 15th January 2021 where it was found that policyholders in the UK are able to recover losses for business interruption caused by the Covid-19 pandemic.

The decision will be welcomed by some 1000 Irish businesses who have made similar claims due to the onset of the Covid-19 pandemic.

The next issue for the Court that will naturally follow today’s judgment will be quantifying the losses that have been incurred by the respective policy holders in the matter. Judge McDonald ruled that this would be considered at a later date.

Please click on the following link to view the full judgment delivered today:

https://www.courts.ie/acc/alfresco/8bfaa5dd-3ea3-4580-979f-0dfb2d8243be/2021_IEHC_78.pdf/pdf#view=fitH

 

All news
Pre controlled function roles for VASP applications

If you are a VASP in Ireland, you will need to register with the Central Bank for AML/CFT purposes. If you are a firm that is not established in Ireland, or you are not conducting business as a VASP before the 2021 Act was brought in, then you must be registered with the Central Bank before any services commence. As part of the regulation of VASPs with the Central Bank of Ireland, individuals holding pre-approval controlled functions within a VASP must be approved under the latest fitness and probity regime of the Central Bank.

Text Link
DIGITAL ASSETS AND DIGITAL INHERITANCE

Digital inheritance is a new term that is becoming more widespread across the globe in relation to the transfer of digital assets in a broad sense. There is a completely new "digital asset" that has been created in terms of cryptocurrencies and therefore with that, inheritance queries follow.

Text Link
Why choose Ireland as a location for payment institutions

Ireland has slowly but surely established itself as an alluring destination for businesses in the Fintech sector.‍ From a solid regulatory framework to an advanced financial services ecosystem, Ireland’s financial technology sector is booming right now and is home to a surprising number of reputable domestic and international payment institutions. Let's take a closer look at the reasons behind this below.‍

Text Link
Key issues when buying a commercial property in Ireland

There are a number of common issues that arise in the purchase of commercial property in Ireland whether it be by auction or private treaty. We set out these issues below for consideration.

Text Link
An overview of MIFID regulation in Ireland

Any investment firm that provides services relating to investment for third party clients or handles investment activities relating to certain financial institutions could fall under the MiFID scope and therefore require authorisation from the Central Bank of Ireland.

Text Link
My business is struggling, what are my options

When a business fails, for whatever reason, the liquidation of the company should not be the only option considered. There is another option to be considered called examinership.

Text Link