On Friday 15th January 2021, the Supreme Court delivered it’s judgement relative to the FCA test case in relation to business interruption cover and allowed substantially for the appeal in favour of policyholders.
The judgement is a complex matter made up of 112 pages covering a number of different issues and it is our intention to seek further independent legal guidance on the matter. We appreciate your patience whilst we do this as it may take some time.
It is important to note that the judgement is not a blanket instruction to all insurers to honour business interruption claims arising from the impact of the pandemic. Each case must be reviewed on its own merit due to the individual nature of insurance contracts. However, the judgement did bring clarity to various key issues which are common across various policy wordings.
More information can be found on the FCA website here
Upon completing our review of the judgement and on the conclusion of the independent guidance being sought, we will be contacting the clients who have policies affected by the judgement in order to provide support in relation to the next step toward presenting a claim.
It is important to note that although your insurer may be one of those selected to be involved in the judicial review, this does not mean that your policy is included as insurers have multiple product offerings in the market. The judgement will not overrule any wording with specific exclusions for losses relative to disease, or alter the position where disease cover is on a specified list basis or where it is confirmed that cover is available only in the event of occurrence or manifestation at the premises.
If you have any questions regarding this, please get in touch with your usual Bruce Stevenson contact.