Covid 19 and business interruption insurance - important case
on 15 September 2020 The High Court handed down judgment in the COVID-19 Business Interruption insurance test case of The Financial Conduct Authority v Arch and Others. The FCA was advancing the claim for policyholders in the case, which considered 21 lead sample wordings from eight insurers. Following expedited proceedings, the judgment brings highly-anticipated guidance on the proper operation of cover under certain non-damage business interruption insurance extensions.
While different conclusions were reached in respect of each wording, the Court found in favour of the FCA on the majority of the key issues, in particular in respect of coverage triggers under most disease and ‘hybrid’ clauses, certain denial of access/public authority clauses, as well as causation and ‘trends’ clauses.
It is a long and complicated judgment, but any business that has had business interruption insurance claim denied during the pandemic should consider consulting lawyers.
Note that an appeal is likely.
Case: FCA v Arch Insurance and others https://www.fca.org.uk/publication/corporate/bi-insurance-test-case-judgment.pdf