Business interruption insurance: the meaning of "loss"

As all readers will know, the majority of property policies offering business interruption insurance will do so on the condition that the interruption is the result of loss or damage affecting the insured premises. In two cases, Headfort Arms Ltd v Zurich Insurance plc [2021] IEHC 608 and Coachhouse Catering Ltd v Frost Insurance Ltd and Others [2022] IEHC 306, Denis McDonald J in the Irish High Court (Commercial), considered whether premises that were temporarily closed by government recommendation or order could be said to have suffered "loss".

The court confirmed that temporary deprivation of possession is not "loss" for the purposes of insurance law. In the absence of loss, the assured must look to policy extensions providing for non-damage business interruption cover.