Time is running out on Covid BI claims

Despite the COVID-19 Business Interruption limitation period approaching its end, Solomonic data shows most claims remain active, but new case volumes have slowed.

Six years on from the first Covid-19 lockdown, and with the limitation period drawing to a close, this article examines how Covid-19 litigation has unfolded in the High Court and what the looming deadline means for claimants. 

As the limitation period approaches, a significant number of claims risk becoming time-barred if not pursued promptly. Late last year, an open letter was submitted to the Financial Conduct Authority (FCA) calling for a two-year extension to the limitation period for Covid-19 business interruption claims, on the basis that many businesses have still been unable to fully recover their losses. The FCA, however, confirmed that no extension would be granted.

The pandemic was a big driver of insurance cases in recent years with 58% of 2025 Covid claims being business interruption (BI) related. However, claim volumes continued to decline in 2025 and we have seen relatively few this year, despite the imminent end of the limitation period. Though new claims have declined, a significant chunk are ongoing, with 76 disputes still making their way to resolution.

This means more than 54% of BI claims are still in active dispute. Unsurprisingly, most cases have concluded through settlement rather than judgment, informed in part by the 2021 SC ruling in the FCA v Arch Insurance test case. 

Many sectors faced severe financial pressures as a result of Covid-19, with some businesses never fully recovering and others still seeking to retrieve their losses. The leisure and sport sectors (including hospitality and hotels) were among the most significantly affected, with consumer products and healthcare sectors also experiencing significant claims. 

While this era is coming to an end, there’s no let up for the insurance sector, which still faces aviation operator claims related to the Russia-Ukraine war and potential fallout from events in the Middle East.

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