Supreme Court Ruling On Business Interruption Insurance

The question on so many Operators’ lips at the moment is will I benefit from the Supreme Court Judgment arising from the Financial Conduct Authorities Business Interruption Test Case.

The decision provides clarity but the points addressed by the Judges are to resolve the contractual uncertainty based on a representative sample of 21 types of policies from 8 insurers whereas there is believed to be some 370,000 policy holders holding up to 700 types of policy issued by 60 Insurers which may be impacted by the outcome of the test case. So there is no immediate “Yes” to everyone who has a policy that has been historically refused cover

To help people at this time there is a helpful updating link on the Financial Conduct Authority website with a set of Q & A’s for Policy Holders so as to assist them and their advisors in understanding the Test Case.

The FCA are currently finalising a Guidance document for Policy Holders which they hope to release as soon as possible.

A link to the web page which will contain updates follows which includes a representative sample of policy wordings from various Insurers which may provide some clarity to people looking at their own Policies.

https://www.fca.org.uk/firms/business-interruption-insurance