Insurer Axa has said it would meet the bulk of business interruption claims from some restaurant owners in France after it lost a court case that was seen as a potential precedent
for coronavirus-related disputes across the world.
The move from the insurance giant will be watched closely, in particular by FBD Insurance and businesses in the hospitality sector here.
It comes after a Paris court ruled last week that Axa should pay a restaurant owner two months' worth of revenue losses caused by the virus pandemic.
Axa had argued its policy did not cover business disruption caused by the health crisis and said it will appeal the Paris ruling. Similarly, FBD says it is "strongly of the view" that its business insurance policies do not provide cover for a pandemic of the nature of the coronavirus.
Litigation between FBD and three pub customers who are claiming cover for business interruption as a consequence of Covid-19 measures has been scheduled for hearing in the Commercial Court in October.