The court held that the insurance was liable to pay the travel company for the losses it incurred as a result of the COVID-19 pandemic.
On 7 July 2023, the Commercial Court found Zurich Insurance Ltd liable for COVID-19 losses of WCE Ltd, a travel company.
The dispute between WCE and Zurich was related to the coverage of refunds for travel bookings that were cancelled due to the COVID-19 pandemic. WCE sought to recover losses incurred as a result of the pandemic by claiming under its insurance policy with Zurich. Zurich denied liability, arguing that the policy did not cover the losses claimed by WCE. The dispute centered on the interpretation of the policy and the extent of Zurich's liability for the losses incurred by WCE.
The court held that Zurich was liable to pay WCE for the losses it incurred as a result of the COVID-19 pandemic. The court found that the policy provided cover for the losses claimed by WCE and that Zurich had breached its obligations under the policy by denying liability. The court also held that WCE was entitled to recover the full amount of its losses, subject to the terms of the policy. The judgment is significant because it clarifies the scope of insurance coverage for losses arising from the COVID-19 pandemic and provides guidance on the interpretation of insurance policies in similar cases.
The judgment does not provide a specific amount that WCE could claim from Zurich. However, it states that WCE was entitled to recover the full amount of its losses, subject to the terms of the policy. The amount of the claim would depend on the losses incurred by WCE as a result of the COVID-19 pandemic and the extent of the coverage provided by the policy.
Reference: England and Wales High Court (Commercial Court), [2023] EWHC 1696 (Comm).
