Business interruption: hybrid clauses

In Transit Pty Ltd and Another v Arch Underwriting at Lloyd's (Australia) Pty Ltd and Others [2024] VSC 485; [2024] Lloyd's Rep IR Plus 37 the question for Delany J in the Victoria Supreme Court was whether a business interruption hybrid extension clause applied to loss suffered by the assured as the result of the official closure of premises in the vicinity of the Insured Premises by reason of Covid-19 on those other premises.

The court held not, and ruled that the relevant clause required the assured to prove that there had been loss resulting from the closure of the other premises, and it did not suffice that the other premises had been closed by reason of Covid-19.