MDS Inc v Factory Mutual Insurance Co [2021] ONCA 594

A corrosion exclusion is a common feature of many policies. In this article, we look at a Canadian decision which held that a corrosion exclusion applied to “unanticipated” corrosion at a nuclear facility, leading to a leak, which in turn led to a shutdown. But the shutdown was not resultant physical damage, so that there was no cover for the losses which resulted.

Swiss Re International SE v LCA Marrickville Pty Limited [2021] FCA 1206

On 8 October 2021, the Federal Court of Australia handed down its decision on the second test case in Australia on business interruption response to COVID-19-related claims. Unlike the first test case,[1] the decision largely went the insurers’ way. Crucially, it also reached a very different conclusion from that reached by the United Kingdom Supreme Court in FCA v Arch UKSC Arch[2] in that country’s test case.

The Australian Financial Complaints Authority (AFCA) has recently found in favour of a business insurance policyholder whose claim for loss of perishable food stock caused by a COVID-19 lockdown was declined.

As regular readers know, Fee Langstone has been providing updates on the UK “test case” on the Business Interruption response to Covid-19 claims as the case has proceeded through the Court.

To recap, the United Kingdom Financial Conduct Authority (FCA) had brought the Covid-19 “test case” with the aim of bringing clarity to areas of uncertainty for as many policyholders and insurers as possible. A sample of twenty-one policy wordings issued by eight insurers was considered, with the FCA putting forward policyholders’ arguments in the public interest.

Limitation periods for old insurance claims

Inicio Ltd v Tower Insurance Ltd [2020] NZHC 90

This recent High Court decision examines the effect of an acknowledgement of liability on the limitation period applying to an insurance claim.