FCA picks apart insurer reliance on Hurricane Katrina judgment in BI test case

Colin Edelman, counsel for the regulator, argued that reversing the Orient Express judgment would “restore sanity rather than creating mayhem and restore these policies to acting in a way an insured would expect them to operate”.

The Orient Express case involved a hotel that closed for two months in 2005 after taking damage from Hurricane Katrina. The insurer in the case, Generali, argued that applying a ‘but for’ test the hotel would have suffered from business interruption whether it was