Business Interruption Insurance

The Covid-19 pandemic has led many businesses to try & make claims on their business interruption insurance.

Several insurers have sent out generic communications to policyholders or made public announcements stating that their business interruption policies with non-damage cover would not apply to Covid-19 related losses.

Due to the uncertainty this created, the Financial Conduct Authority decided to seek clarification in the High Court to resolve the question of whether or not businesses claims are valid.

The High Court considered a representative sample of policy wordings & has issued a binding judgement (subject to any appeal) on the correct interpretation of the wordings in relation to the pandemic.

The situation is complicated & businesses seeking to claim would be wise to seek legal advice so that the wording of their specific insurance policy can be reviewed in light of the high court judgement.