In the second judgment in Bath Racecourse, one of the questions the court had to consider was the meaning of the phrase “any one loss” in the composite policy under consideration providing cover against material damage and business interruption.
The court found that the phrase “any one loss” meant each new trigger event. A restriction imposed by a competent authority is a loss, which rans until it ceased to have effect or until the indemnity period came to an end. The “any one loss” limit applied to each insured facility operated by the insured.
The insureds operated racecourses, greyhound tracks, golf clubs, hotels and a pub at various locations in England and Wales and claimed under their business interruption policy following the COVID national lock-down.
As in South Africa, there were various changes to the lock-down rules, relaxations, the adoption of a tiered system. There was a second lock-down on 5 November 2020 and then the re-introduction of a tiered system at a later date.
There was a non-damage business interruption extension for any claim “resulting from interruption of or interference with The Business carried on by The Insured at The Premises in consequence of … action by the Police Authority and/or the Government or any local Government body or any other competent authority following danger or disturbance within a one mile radius of The Premises which shall prevent or hinder use of The Premises or Access thereto”.
The insured argued that they were entitled to a separate limit for each of the 1255 races affected by COVID restrictions. That was rejected. The court concluded the limit applied per premises and per relevant restriction. Measures which either maintained or reduced existing restrictions did not count.
There would be a new trigger event every time there was a new restriction rather than a technical change to an old restriction.
On general principles, the interpretation and result should be similar under South African law.