The High Court has today published its 162 page ruling, in relation to the Financial Conduct Authority’s (FCA’s) test case relating to business interruption insurance.

In the test case, the FCA took the step of bringing proceedings as against 8 insurers, in relation to 21 sample wordings from policies provided by those 8 insurers, to ascertain whether losses sustained as a result of their closure due to lockdown, were recoverable under the policies.

In a determination which has been beneficial in a number of circumstances, the High Court found in favour of the FCA, as regards most of the policy wordings, albeit not in relation to all.

The test case should be considered carefully, to ascertain whether your individual business interruption clause falls within the relevant wording that would enable you to bring a claim pursuant to this test case. It has however been stressed, that this does not mean that all businesses will be covered for business interruption insurance, and it could still be a minority who are covered, but this will provide a significant relief for a number of individuals.

If you are uncertain as to whether or not your matter falls within a category covered by the test case, you should contact Lorraine Lancaster on 01702 338 338 or [email protected]

This article does not necessarily deal with every important topic or cover every aspect of the topics with which it deals. It is not designed to provide legal or other advice. If you require specialist advice on this topic, please contact us to discuss how we may assist you.