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First sentence condemning an insurance to INDEMNIFY

FIRST SENTENCE CONDEMNING AN INSURANCE
COMPANY TO INDEMNIFY A BUSINESS PREMISES CLOSED
DUE TO COVID

To date, the Courts have not yet spoken in Spain as to whether Insurance
Companies must compensate business premises closed due to COVID
when there is coverage of activity cessation in the said Insurance policy.


The Provincial Court of Girona, in its sentence of the 3rd of February 2021,
has condemned the Insurance Company ADESLAS to indemnify a Pizza
Restaurant for loss of profits from the forced closure caused by the
measures agreed in the current health crisis we are experiencing due to
COVID-19.


The policy subscribed included coverage that with a compensation of 200
euros for a maximum period of 30 days in the event of a cessation of
activity and loss of profits.


The Tribunal, in its Sentence states that the Insured company has seen its
activity interrupted and his income reduced, finding the insurer refusing to
face a clear limitation of the insured’s rights in an adhesion contract, so that
the coverage is enforceable on the part of the insurer would be conditional
on it having appeared in a special way in the signed policy.


In its judgment, the Court says that the insured Company has seen his
activity interrupted and his income reduced, as the insurer is refusing to
face a clear limitation of the insured’s rights in an adhesion contract, the
opposition of the coverage by part of the insurer would be conditioned to
its appearance in a special way in the policy subscribed.


In this regard, other European Countries have spoken, such as the United
Kingdom and France, where Jurisprudence has already been created in this
regard, and which condemn the insurers Companies to pay compensation in
these cases.

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