The COVID-19 pandemic: contract and insurance law implications
Nousia, K
Date: 1 August 2020
Article
Journal
Journal of International Banking Law and Regulation
Publisher
Sweet and Maxwell
Abstract
The spread of COVID-19 has had a global impact, with the human toll being significant, and
with the the economic cost being unquantifiable. With regards to business and contractual
relationships, legal liabilities owed to disruption, cancellations, or to the imposed halt of
everyday life are perhaps the most notable. This article ...
The spread of COVID-19 has had a global impact, with the human toll being significant, and
with the the economic cost being unquantifiable. With regards to business and contractual
relationships, legal liabilities owed to disruption, cancellations, or to the imposed halt of
everyday life are perhaps the most notable. This article starts by examining frustration in
English, US and continental contract law in relation to cases where the circumstances have
changed due to unnatural events such as the ongoing COVID-19 pandemic. It then moves on to
discuss the impact of Covid-19 on insurance, in particular business interruption, travel and
general liability insurance. The likelihood of success of future claims, the scope of coverage,
together with the meaning and interpretation of the term “force majeure” and how this will
relate to exclusions from insurance coverage is discussed. Valuations methods are also
considered and evaluated with a view to protect the policyholder as his business interruption
policy is a contract of adhesion not having left him any room to negotiate. In addition, possible
interpretations to be followed by courts in future claims and liability for catastrophic risks and
methods of compensation are examined and conclusions on the role of insurance in the COVID19 pandemic are drawn.
Law School
Faculty of Humanities, Arts and Social Sciences
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