Business interruption cover – test case will bring clarity for businesses
The Financial Conduct Authority (FCA) has commenced court action which it hopes will bring clarity for policyholders and insurers regarding business interruption (BI) insurance cover in the context of COVID-19.
The case is based on a representative sample of policy wordings intended to capture the majority of the key issues in dispute between policyholders and insurers. As part of the process, the FCA has required all insurers to write to policyholders who have submitted a business interruption claim connected to COVID-19 advising whether (in the insurer’s opinion) their claim will be impacted by the test case.
You can find out more about the BI test case process on the following links:
How the FCA is engaging with policyholders:
https://www.fca.org.uk/news/statements/business-interruption-insurance-during-coronavirus
Detail on the framework of the process:
The full approach taken by the FCA with links to the actual pleadings filed at Court by the FCA:
https://www.fca.org.uk/firms/business-interruption-insurance#latest-updates
It is expected that the outcome of this case will be known within weeks Until then, our advice to policyholders is to make appropriate claims if you have not yet done so and do not accept rejections until the Court has given its guidance.
Photo by Mahosadha Ong on Unsplash
If you have any questions, please contact Robert.
Robert Marcus Partner - Commercial +44 (0) 20 7060 5861 robert.marcus@jurit.com
Please note this paper is intended to provide general information and knowledge about legal developments and topics which may be of interest to readers. It is not a comprehensive analysis of law nor does it provide specific legal advice. Advice on the specific circumstances of a matter should be sought.
