The UK Supreme Court has concluded hearing appeals in the Financial Conduct Authority (FCA) test case on business interruption insurance following the High Court judgment handed down on 15 September 2020.
The test case was taken as the FCA’s view was that most policies do not cover pandemics and most insurers will have no obligation to pay out in relation to the Covid-19 pandemic. The test case was intended to cover only certain commonly used policy wordings in non-damage business interruption policies where there is uncertainty as to whether pandemic coverage is provided. In the original judgment the High Court found for the FCA and policyholders on a number of key points, particularly that most, but not all, of the relevant policy wordings were triggered by the pandemic.
The FCA itself described the case in written statements to the Supreme Court as “probably the most important insurance decision of the last decade”. This will undoubtedly be the case for many business owners who have been impacted by the Covid-19 pandemic and the UK government’s response, with the financial stakes high for Insurers also.
While the Supreme Court recognised the desire for a final ruling in early course, they were unable to say whether judgment will be handed down before Christmas. So, in conclusion, watch this space.
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