Many policyholders whose businesses have been affected by the Covid-19 pandemic have suffered losses, resulting in a number of claims under business interruption (BI) policies.
On the 15th September the High Court handed down its judgment in the Financial Conduct Authority’s business interruption test case, which aimed to provide clarity on how insurers should approach non-damage business interruption (BI) claims relating to the Coronavirus crisis.
Due to the breadth and complexity of the ruling, insurers will now be reviewing how this applies to them which may take some time. Please note that there is also the possibility that any insurers involved in the case might appeal the judgement, which would lead to further delays in any claims settlements.
Businesses who are concerned about the impacts of Covid-19 should check the scope of their cover, and check with their insurance advisor or broker.