Most business interruption insurance policies have not responded to claims for loss of income for various reasons.
The insurance industry regulator, the Financial Conduct Authority (FCA), brought a test case hearing to the High Court on July 20th to provide 'clarity and certainty for everyone involved in these business interruption disputes, policyholder and insurer alike'. They have selected examples of policy wordings from 16 insurers and eight insurers took part in the court case.
The trial is not designed to prove whether these policies were intended to cover pandemics but focus on whether the wordings actually provide the cover, requiring insurers to legally consider and respond to the claim. The test case hearing continued until Thursday, 30 July 2020 and the court's judgment is expected in the next few weeks.
We think it is important that policyholders monitor progress of the hearing with a view to making or contesting a claim should the FCA be successful.