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Supreme Court rules insurers must pay £1.2bn compensation to businesses affected by Covid disruption

The Supreme Court has ruled that insurance firms will be forced to pay out on policies where money has been lost due to the Covid-19 pandemic.
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Can I claim for Covid disruption on my business insurance | East Anglian Daily Times

Published:
3:14 PM January 15, 2021

The UK s highest court has ruled on a landmark £1.2 billion legal battle over businesses’ ability to claim on insurance for coronavirus-related disruption.
- Credit: PA
The Supreme Court has “substantially allowed” an appeal in a £1.2billion legal battle, allowing firms to claim on insurance for coronavirus-related disruption.
The Financial Conduct Authority (FCA) last year brought a test case, which could affect around 370,000 businesses, over the wording of business interruption insurance policies, which some insurers argued did not cover the Covid-19 pandemic.
The City watchdog previously said it was bringing the legal action following “widespread concern” over “the lack of clarity and certainty” for businesses seeking to cover substantial losses incurred by the pandemic and subsequent national lockdown. ....

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Coronavirus: Hiscox court insurance finding means industry to pay out over £1.8bn to businesses

The Supreme Court has "substantially allowed" an appeal brought by the Financial Conduct Authority in a landmark £1.2 billion legal… ....

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Insurers urged to 'move quickly' to pay claims after Supreme Court ruling | Burnham and Highbridge Weekly News

Huw Evans, director general of the Association of British Insurers, said the judgment brought ‘clarity’ to the issue. ....

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Supreme Court rejects insurers' appeals in BI test case judgment

Insurance Age
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The court also concluded that the Orient Express case, which insurers relied on during the hearing, was wrongly decided and should be overruled.
The Supreme Court has ruled largely on the side of the Financial Conduct Authority (FCA) and policyholders, according to the judgment in the business interruption test case appeal published today (15 January).
Both policyholders and insurers lodged appeals on certain aspects of the original judgment.
The Supreme Court said in the judgment: “Although we have accepted some of the insurers’ arguments on their appeals, in no case has that affected the outcome of the appeal. It follows that the insurers’ appeals are dismissed.” ....

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