UK Supreme Court to Hear Appeal of COVID Business Interruption Test Case on Nov. 16

The UK Supreme Court will hear an appeal on Nov. 16 of the Financial Conduct Authority’s (FCA) test case over which insurance companies should offer payouts to small businesses battered by the coronavirus pandemic.

Although expedited, the appeal has delayed payouts on disputed claims just as thousands of struggling businesses face a second national lockdown this week to curb resurgent coronavirus cases.

The FCA said in September that the lower court found in favor of policyholders’ arguments in the majority of key issues.

Lower court judges examined three types of policy wordings that cover business interruption: when insured premises cannot be accessed because of public authority restrictions, in the event of a notifiable disease within a specified radius and a mixture of these two.

The FCA, which has previously said it was continuing to talk to insurers, said it welcomed the Supreme Court’s decision on Monday to grant permission for the expedited appeal.

The case is being watched overseas, as companies lock horns with insurers over pandemic-related claims in countries from South Africa to the United States.

Powered by Blogger.