Insurance policy does not cover Covid-19 pandemic closures where virus did not manifest itself at hotel premises

Commercial Court – interpretation of a closure/disease clause in a policy of insurance – interrelated issue of causation – business interruption cover for closure during the COVID-19 pandemic – closure or restrictions placed on a premises - on the advice of the Medical Officer of Health of the Public Authority – notifiable human disease manifesting itself at the premises – total cessation of business or partial restriction – notifiable disease – medically confirmed or medically diagnosed case within the premises – what does the plaintiff need to prove to show there was a notifiable disease at the premises – no diagnosed case of COVID-19 on premises – insurer refused to indemnify the hotel for closures since March 2020 and September 2020 - expert evidence – public policy – test case – ramifications for many RSA policy holders – evidence given that manifestation of a disease can be said to occur where characteristics are present that suggest occurrence of the disease in the community – prevalence in the population and likelihood of that resulting in manifestation of the disease on the premises – behaviour of infections – incubation periods – disease can manifest at a premises without an individual displaying symptoms there – text in context approach – language of the policy in the context of the relevant factual and legal background that existed at the time the contract was concluded – reasonable person in the position of the parties at the time – exemption and exclusion clauses – meaning of the clause at time of the contract, prior to COVID-19 – policy not tailored specifically to the hospitality sector – hotel has capacity to serve customers who never entered the premises – hotel premises – manifesting itself at the premises required a symptomatic case of a notifiable disease at the hotel – a diagnosed case of a notifiable disease at the premises – detection of the causative pathogen – no proof that COVID-19 manifested itself at the premises in accordance with the policy – language is clear – case adjourned to consider whether further issues arise and if so, what steps should be taken to bring the proceedings to a conclusion.