Business Interruption and Covid-19 Update 6th August 2020
6th August 2020
During the last two weeks of July the FCA’s test case took place in the High Court to seek clarity on business interruption insurance during the coronavirus crisis. The trial has now concluded and judgement is awaited.
The issues relating to business interruption policies are complex and the variation in types of cover provided and wordings has led to uncertainty and disputes. Many customers believing they have had valid claims have had them rejected by their insurer.
The result of the test case will be legally binding on the insurers that are party to the trial and will provide guidance for the interpretation of similar policy wordings and claims.
Following completion of the trial the exact date for the judgement to be announced is not yet known, but is expected to be around the middle of September.
For more information on this matter visit www.fca.org.uk/firms/business-interruption-insurance and www.abi.org.uk/products-and-issues/topics-and-issues/coronavirus-hub/business-insurance/