27/01/2021
Business Interruption Insurance Test Case
Updated 2.1.21
Following the Supreme Court ruling on the 15th January, the FCA has issued a ‘Dear CEO’ letter to the insurers involved in the Test Case.
The FCA has made it quite clear to insurers (and their managing agents) as to what is now expected of them in order to swiftly settle with those customers that have valid business interruption claims.
Tools for small businesses
The FCA has since published a policy checker and FAQs area on its website for use by small businesses.
This checker will help policyholders to find out if their insurance policy may cover business interruption losses caused by coronavirus and what they can do next.
You can read all their updates and find further information on their dedicated business interruption webpage.
If you have any questions on how to undertake the check, have a question about your own policy or need assistance, please do not hesitate to contact us.
Next Steps
We're also awaiting the publication of the following important communications:
Declarations: To give effect to the Supreme Court findings as they apply to each of the wordings under consideration.
FCA: The outcome of the consultation on the draft guidance proving the presence of coronavirus.
Insurers should now be in the process of contacting those policyholders who have made claims that are potentially affected by the Supreme Court judgement, and to explain the next steps.
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