Federal Court of Justice decides: Does business closure insurance pay in the event of a Corona lockdown?

Federal Court of Justice decides: Does business closure insurance pay in the event of a Corona lockdown?

According to a report by www.tagesschau.de,

If a business was forced to close due to the Corona lockdown: Does the insurance then pay? Under certain circumstances, the Federal Court of Justice now says.

It was bitter for hotels and restaurants that they had to close for weeks because of Corona. Some had taken out so-called “business closure insurance” for such cases so that they could receive money if, for example, they were not allowed to receive guests due to a reportable illness.

First decision in favor of the insurance company

A year ago, the BGH decided for the first time: In the case of Corona, the small print in the contract matters. An innkeeper didn't get any money because his contract listed all possible epidemics and diseases, but no Covid-19.

Infection Protection Act is crucial

Today another decision regarding these insurance policies: this time it was about a hotel business. Here the small print in the contract simply referred to the Infection Protection Act, which was listed there. Since Corona was one of the diseases listed in the law from May 2020, the insurance company has to pay for the closure of the hotel from autumn 2020.

File number: IV ZR 465/21

The Federal Court of Justice's decision on the question of whether insurance companies have to pay in the event of Corona lockdowns can have a significant impact on the industry. A decision in favor of insurance can mean that many companies are financially relieved and can secure their existence. On the other hand, insurance companies could experience higher costs if they have to cover the closure of businesses. This could lead to higher premiums for similar insurance contracts and increase the economic burden on many companies. It is therefore important to closely monitor the impact of this decision on the market and consumers.