New Delhi: According to reports, Premier League giants Arsenal FC and Liverpool FC have reached a settlement with their insurers over business interruption (BI) claims related to the COVID-19 pandemic. This agreement concludes a legal battle that began in 2022, involving several top-flight English football clubs seeking compensation for financial losses incurred during the pandemic.
The COVID-19 pandemic had a profound financial impact on professional sports, with football clubs facing significant revenue shortfalls due to match cancellations and the absence of live audiences. The resolution of these BI claims provides a measure of financial relief and sets a precedent for how similar disputes might be handled in the future.
It’s noteworthy that the settlements were reached without proceeding to a full trial, which had been scheduled for 2025. This outcome suggests a willingness among insurers and policyholders to negotiate terms that acknowledge the unprecedented nature of the pandemic and its effects on businesses.
How did Arsenal and Liverpool get tangled in the insurance dispute?
A blockbuster insurance trial between two Premier League clubs and their insurers will not come to pass as Arsenal and Liverpool agreed to settle their claims. https://t.co/X1Ab4KjSya
— The Lawyer (@TheLawyermag) December 19, 2024
In 2022, Arsenal and Liverpool, along with clubs like Tottenham Hotspur, Aston Villa, West Ham United, and Brighton & Hove Albion, filed lawsuits against major insurers—including Allianz, Aviva, CNA Insurance, Zurich, and Liberty.
The clubs argued that their BI insurance policies should cover the substantial revenue losses suffered due to the suspension of matches and the enforcement of games without spectators during the COVID-19 lockdowns.
According to reports, the legal foundation for these claims was the UK Supreme Court’s January 2021 ruling in the Financial Conduct Authority’s (FCA) BI test case. This landmark decision clarified that, in many instances, insurers are liable for BI losses when policies include coverage for closures resulting from infectious disease outbreaks.
Who acted on behalf of Arsenal and Liverpool?
Tim Lewis ascent through the club ranks from Clifford Chance is literally my ultimate aspiration. https://t.co/QXJNKymSRo
— Օmar (@abusinomar) March 15, 2023
While the specific terms of the settlements remain confidential, reports indicate that negotiations were conducted by legal firms representing the respective parties. Clifford Chance, acting on behalf of Arsenal and Liverpool, facilitated the recent agreements.
Earlier in the year, other clubs involved in similar disputes, such as Tottenham Hotspur, West Ham United, Aston Villa, and Brighton & Hove Albion, also reached settlements with their insurers.
Arsenal and Liverpool have settled their COVID-19 business interruption claims with insurers, concluding a legal battle initiated in 2022. Football Sports News: Latest Cricket News, Cricket Live Score, Sports Breaking News from Sports Today
