High Court rules in favour of struggling firms in Business Interruption Insurance Case
Insurers may have to pay out to hundreds of thousands of British businesses whose had business interruption insurance claims rejected during the Covid 19 pandemic following a High Court decision in a test case brought by the Financial Conduct Authority (FCA) which found in favour of policyholders.
We asked Lucy Rumming of The Willows Insurance Services for her thoughts.
“The Pandemic and subsequent lockdown were a really unprecedented situation for British business and also insurers, it is great that the FCA moved so quickly to try and find some clarity in how insurance policies should respond for the businesses who have some form of pandemic or authority shut down cover included in their business interruption insurance. This case is really important for those businesses who did have this sort of cover in place and also for insurers to be able to respond appropriately, and also look at ways to deal with this sort of situation in the future should it happen again.”
Further commentary about the decision can be found at https://www.bbc.co.uk/news/business-54158830