Author: Katherine Heubeck
We at FSB Insurance Service Ltd are guided by our regulator, the FCA, regarding issues surrounding the interpretation of wordings on Business Interruption and the impact of the coronavirus (COVID-19) pandemic.
The FCA previously invited policyholders of BI insurance in dispute with their insurers about the terms of their policies to contact the regulator to be part of the test case.
The result of the test case will be legally binding on the insurers that are parties to the test case in respect of the interpretation of the representative sample of policy wordings considered by the court. It will also provide persuasive guidance for the interpretation of similar policy wordings and claims, that can be taken into account in other court cases including in Scotland and Northern Ireland, by the Financial Ombudsman Service and by the FCA in looking at whether insurers are handling claims fairly.
The FCA’s Business Interruption insurance test case is going through the UK courts at the moment. It is estimated that the court hearing will be held towards the end of July.
The Financial Conduct Authority (FCA) has created a new webpage dedicated to sharing as much information as possible about its efforts to obtain a court declaration to resolve the contractual uncertainty around the validity of many business interruption (BI) claims arising during the Coronavirus (Covid-19) pandemic. Brokers and their clients may access the webpage by clicking here.
The FCA is regularly updating this page with information on what it has done and is doing.
If you hold business interruption cover, you may wish to subscribe for e mail updates from the FCA on the FCA’s webpage for the test case here: https://www.fca.org.uk/firms/business-interruption-insurance
If you are eligible, you may also wish to look at material issued by the Financial Ombudsman Service concerning business interruption insurance cases, which you can access here: https://www.financial-ombudsman.org.uk/businesses/complaints-deal/complaints/coronavirus-covid-19-information-businesses
Small Business Insurance for Dummies eGuide
Business Continuity Planning Kit
Free Advice Newsletter Subscription
... and more!