The COVID-19 pandemic has led to widespread business disruption and closures resulting in substantial financial loss. Many businesses have therefore made claims for these losses under their Business Interruption (BI) insurance policies. However, there has been a lack of clarity and certainty from insurers for some businesses making these claims.

The Financial Conduct Authority (FCA) has accordingly sought clarification from the Courts to resolve the contractual uncertainty around the validity of many BI claims.

The Supreme Court handed down its judgment earlier this year substantially allowing the FCA’s appeals and dismissing the insurers’ appeals. Many thousands of policyholders who have cover should now have their claims for coronavirus-related business interruption losses paid.

The judgment is legally binding on the eight insurers that agreed to be parties to the test case. Those insurers are:

– Arch Insurance (UK) Ltd
– Argenta Syndicate Management Ltd
– Ecclesiastical Insurance Office Plc
– MS Amlin Underwriting Ltd
– Hiscox Insurance Company Ltd
– QBE UK Ltd
– Royal & Sun Alliance Insurance Plc
– Zurich Insurance Plc

To find out if your insurance policy may cover business interruption losses caused by coronavirus and what to do next, please visit: https://www.fca.org.uk/firms/business-interruption-insurance/policy-checker

If you would like further advice or help to calculate your claims, please contact us.