Covid-19 - Business Interruption Insurance Update
Mon, January 25, 2021
The decision announced by The Supreme Court in the FCA Test case on the 15th January has established the legal responsibility of insurers in the UK for losses arising out of disruption to businesses as a result of COVID-19.
Contrary to claims made by the press and broadcasters this will affect only a small minority of policyholders where the wording was unclear or a gap had been identified. We are waiting for the FCA to issue a Q&A document for policyholders, giving guidance on who is now entitled to claim. The FCA are also working with insurers so that they rapidly conclude their claims processes on claims that the Supreme Court has said should be paid, providing interim payments wherever possible.
More information about the judgment and background to the FCA’s test case, can be found on the FCAs website https://www.fca.org.uk/firms/business-interruption-insurance
We are in the process of reviewing each policy against the judgment to work out what it means for each policy and will be in touch with any Clients that will be affected.
Clients who have already submitted claims which are affected can expect to hear from their insurer soon.
If you have any questions or wish to discuss whether you are affected by the Test case, please contact your Account Director.