Business interruption insurance: composite insurance and furlough payments

In Liberty Mutual Insurance Europe SE v Bath Racecourse Co Ltd [2025] EWCA Civ 153 the Court of Appeal has upheld the decision of Jacobs J, [2024] EWHC 124 (Comm); [2025] Lloyd's Rep IR 82, on a series of preliminary issues arising out of the application of business interruption policies to the Covid-19 pandemic.

There were two main points: what was the limit of indemnity under policies covering a number of policyholders; and were furlough payments received by policyholders from the Government to be deducted from the sum recoverable from the insurers? The only reasoned judgment in the Court of Appeal was given by Sir Julian Flaux.