News & Articles
News from Freddy K at Menzies - Considering a CVA
Now that the UK economy is almost fully opened for business again, many businesses can take stock of the financial damage caused by the pandemic and put in place their own restart plans.
News from Freddy K at Menzies - The importance of cashflow
One of the most common reasons for failure of a business is a lack of cash to pay suppliers, HM Revenue & Customs and other creditors. Even where a business is doing well, cash planning is an important tool to manage finances and help with their smooth running.
News from Freddy K at Menzies - Managing the road to recovery
Unprecedented financial stimulus during the pandemic has helped UK businesses to weather exceptionally tough trading conditions and keep cash flowing. However, the time is nearing for business owners to stand on their own two feet.
KAZAKHSTAN: presented the first earthquake risk model, designed specifically for the Republic of Kazakhstan
6 April 2021
A year after the release of the review of the rating agency S&P Global Ratings, the first earthquake risk model Tremblor with a high degree of detail on the zoning of the territory was presented on the Kazakhstani insurance market.
R (Maughan) v HM Senior Coroner for Oxfordshire - standard of proof for Coroners' Inquests
Supreme Court confirms that Coroners’ Inquests shall apply the lower civil standard of proof to all forms of Inquest conclusions of suicide and unlawful killing.
FCA BI Insurance Test Case Supreme Court Judgment - Carter Perry Bailey Summary
15 January 2021
The Supreme Court handed down its judgment in the leapfrog appeal of the FCA Business Interruption Insurance Test Case. Although the lower court had largely found in favour of the FCA, both Insurers and the FCA appealed on various issues.
The Supreme Court broadly accepted the FCA appeals (with some qualifications).
Although it accepted some of the arguments made by Insurers, they ultimately concluded they did not affect the outcome of the appeal. Insurers’ appeals were all dismissed.
The outcome of this decision means that all insuring clauses that were being considered in the appeal will provide cover for losses caused by Covid-19 and these losses will not be reduced by reference to any Covid-19 related losses that occurred prior to policies being triggered.
The case provides new law on issues of causation and overturns the, arguably insurer-friendly, decision in Orient Express Hotels v Assicurazioni Generali SpA. The Supreme Court’s decisions have effectively widened the scope of cover available to policyholders, applying an even broader interpretation than the already generous application of the High Court.
It is anticipated that this decision could cover some 700 types of policies across over 60 different insurers, potentially affecting 370,000 policyholders.
FCA BI Insurance Test Case Judgment - Carter Perry Bailey Summary
18 September 2020
Following the 8-day hearing of the FCA business interruption insurance test case, which commenced on 20 July 2020 (you can read our summary of the hearing and the background to the claim here), the High Court handed down its judgment on 15 September 2020.
This judgment provides guidance on, amongst other things, the application of (i) prevention of access clauses; (ii) disease clauses; (iii) hybrids of the aforementioned clauses; and (iv) trends clauses.
Lord Justice Flaux and Mr Justice Butcher found in favour of the FCA on a number of important points, including causation, many of the policy triggers and the application of the trends clauses.
Most, but not all, of the sample disease and hybrid clauses considered by the Court were found to provide cover as were some of the prevention of access clauses. The full judgment can be found here.