The Supreme Court has delivered its judgment in the Financial Conduct Authority’s (FCA)’s business interruption insurance test case.
The coronavirus pandemic has led to widespread disruption and business closures resulting in substantial financial loss. Many customers have made claims for these losses under their business interruption (BI) insurance policies.
The issues surrounding BI policies are complex and it was recognised that they had the potential to create ongoing uncertainty for both customers and firms.
The FCA accordingly sought clarification from the High Court as part of a test case, aimed at resolving the contractual uncertainty around the validity of many BI claims.
The Supreme Court handed down its judgment on 15 January 2021 substantially allowing the FCA’s appeals and dismissing the insurers’ appeals. This means that many thousands of policyholders who have cover should now have their claims for coronavirus-related business interruption losses paid.
For further information please visit the FCA website.
Source: Business Wales
Posted on: Monday 18th January 2021