Business interruption insurance: furlough payments

In Gatwick Investment Ltd and Others v Liberty Mutual Insurance Europe SE; Bath Racecourse Co Ltd and Others v Liberty Mutual Insurance Europe SE and Others [2026] UKSC 14; [2026] Lloyd's Rep IR 316 the Supreme Court has upheld the decision of the Court of Appeal, [2025] Lloyd's Rep IR 353, and has ruled that business interruption insurers are entitled to deduct from their lockdown payments any sums received by policyholders from the Government in the form of furlough payments. The only reasoned judgment was given by Lord Hamblen, Lord Leggatt and Lord Burrows. Lord Reed and Lord Briggs simply expressed their concurrence.

The facts