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COVID-19: Insurance - The UK Supreme Court Judgment Brings Positive News for Policyholders in FCA s Business Interruption Test Case Tuesday, January 19, 2021
Background to the Test Case
Following a four day hearing in November 2020, the UK Supreme Court has handed down the appeal judgment in the test case brought by the Financial Conduct Authority (FCA) on behalf of UK based small and medium enterprises (SMEs) seeking clarity on the coverage provided by certain extensions of cover for COVID-19 related business interruption losses (The Financial Conduct Authority v Arch and Others). The test case related to the interpretation of certain Disease Clauses, Prevention of Access and so-called Hybrid Clauses, and whether or not they provide insurance cover under English law for business interruption losses resulting from the COVID-19 pandemic and related measures taken by UK authorities. Further information on the High Court judgment can be found in our alert