Business Interruption FCA Test Case Update (Jan 2021)

January 2021

The judgment today in the Supreme Court on the FCA’s business interruption test case substantially allowed the FCA’s appeals on behalf of policyholders and dismissed the insurers appeals and is good news for those businesses that had purchased an unspecified diseases extension.

The judgment brings clarity for many customers which have been waiting to find our if their claims will be paid.

The ABI has indicated that: “Customers who have made claims that are affected by the test case will be contacted by their insurer to discuss what the judgment means for their claim. All valid claims will be settled as soon as possible and in many cases the process of settling claims has begun.”

Further update shall follow as the impacts of the decision become better understood.