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Business interruption insurance during the coronavirus pandemic – High Court test case

The Financial Conduct Authority (FCA) is seeking to obtain a court declaration to resolve contractual uncertainty in business interruption (BI) insurance cover.

The Covid-19 pandemic and the government-imposed lockdown has resulted in various difficulties for businesses and an increasing number of claims being made to insurers under the terms of BI policies.

The negative and uncertain response to claims under BI policies and the negative and inconsistent response from some insurance companies has led the FCA to seek guidance from the courts on behalf of policyholders. This is particularly welcome to small businesses who have been greatly affected by the pandemic.

The action by the FCA will not prevent arbitration or claims being individually made through court proceedings, or alternative dispute resolution processes.

The FCA’s actions are to be welcomed in the present challenging times and guided by the public interest test.

It is clear that in the present climate there is a need for the ethos of “we are all in this together” and interdependence between business and society.

If you need any assistance in relation to ongoing issues regarding Business Interruption matters please contact Anil Rajani, E:

Click on this link for more details.


This briefing is for guidance purposes only. RadcliffesLeBrasseur LLP accepts no responsibility or liability whatsoever for any action taken or not taken in relation to this note and recommends that appropriate legal advice be taken having regard to a client's own particular circumstances.

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