As you may be aware, the Financial Conduct Authority (FCA), the UK’s financial conduct regulator, brought court proceedings in July 2020 to test how certain business interruption insurance policies respond to claims arising from Covid-19.

The Court delivered its judgment on Tuesday 15^th September 2020 and you can find details of it here. You can also visit the FCA’s business interruption hub here for more information.

Although the Court found in favour of the arguments advanced for policyholders by the FCA on the majority of the key issues we have already seen various holding responses from the relevant insurers as they digest the implications of the 150 page judgement.  Although the judgement will bring welcome news for many policyholders it is important to note that the judgement did not say that the eight defender insurers are liable across all of the 21 different types of policy wordings considered. Then of course there is the question of potential appeal on aspects of the judgement by insurers to the Court.

We will of course get in touch with you again once we know whether any appeal will take place and in the meantime our Claims Division continues to liaise with the relevant insurers on behalf of all affected policyholders.