23 December 2022
On 25 October 2022, the Provincial Court of Palma de Mallorca (Balearic Islands) upheld the judgment of a lower court ordering an insurer to compensate a rural hotel owner with almost €100,000 due to the establishment’s forced closure for COVID-19 restrictions in 2020.
The rural hotel had been closed between 1 March and 3 July 2020, and between 16 September and 31 October 2020. The Court found that a clause restricting the insurance coverage contracted for loss of profits was in fact limiting the rights of the insured, but not delimiting the risk. Thus, closure for government restrictions due to the pandemic was covered.
