COVID-19 & BUSINESS INTERUPTION
BI Claims – FCA Legal Test Case Judgment
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As you will be aware, a judgment was reached on 15 September following the Financial Conduct Authority’s (FCA) legal test case in the High Court, looking at whether business interruption coverage applies to COVID-19 related business interruption (BI) claims.
The judgment can be found on the FCA’s website, the appeal was heard 16th November – 20th November in the Supreme Court and we await the final outcome which is expected by January 2021.
We have been keeping track of where insurers have been issuing their required updates on the implications of the test case judgment and we remain committed to working with our clients through this process.
Business Interruption and COVID-19
A question that continues to arise is whether business interruption (BI) coverage responds to COVID-19 related losses. Fundamentally, a BI policy pays the insured following a loss of earnings as a result of loss of or damage to property. Some policies provide cover for non-damage business interruption in specific circumstances and often with a limited amount of cover. As widely reported there have been disagreements between insurers and policyholders as to whether BI policies provide cover for losses resulting from the COVID-19 pandemic. Many factors impact the application and level of coverage. The FCA test case was aimed at bringing clarity to many of the key issues.
Where applicable, your broker will be guiding you through this process, so it will be important that their focus remains on supporting you in all relevant ways and working on your behalf, to secure valid payments from any insurance policies you have in place.
If you have any questions regarding this judgment or its implications, please feel free to get in touch with your usual client representative or contact us here. |
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