Could business interruption insurance case aid processors?
As with many other sectors of the economy, food and drink processors have faced interruption to their operations on an unprecedented scale as a result of the COVID-19 pandemic.
For example, they face the temporary closure of factories due to outbreaks of the disease among workers, disruption to supply chains. Many have also dealt with a drop in demand as restaurants, cafés and other hospitality venues are forced to limit their service offering or close completely.
The business interruption (BI) insurance test case was brought in June 2020 by the Financial Conduct Authority (FCA) on behalf of mostly small and medium sized businesses. These include hospitality venues, which have suffered heavy financial losses as a result of the pandemic and the public health measures taken.