QC accuses FCA of failure to show causal connection between government action and the disturbance to the insured businesses

Insurers argued the Financial Conduct Authority is “unable to demonstrate” any meaningful connection between the action taken by the UK government on a national basis in response to Covid-19 pandemic and the locality of firms’ premises, as the court heard submissions from Zurich, QBE and Argenta yesterday.

Craig Orr QC, representing Zurich, continued his arguments from the day before. He argued that the vicinity requirement is the local focus of the clause and that any civil authority action that triggers the cause must follow danger or disturbance occurring locally.

He said: “The term clearly requires causal connection between the danger or disturbance occurring in the locality of the premises and the civil authority action, which prevents access to the premises”.

He said that in considering