Court rules in favour of policyholders in FCA Business Interruption Test Case

16 Sep 2020

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The High Court has found in favour of insurance policy holders, represented by the FCA, in a Business Interruption Insurance (BII) test case.

Many businesses have suffered significant losses as a result of Covid-19 and made claims under their BII policies assuming they would pay out. The dispute covered certain key clauses in the policies including those of “disease” and “denial of access”. Whilst some insurance companies were disputing that Covid-19 fell under these clauses, the decision in the High Court has found that they did.

The decision is a welcome one for policy holders. The judgement is long (150 pages) and complex so any affected businesses should review their policies with their insurance broker to see what cover they may have.