FCA says court ruling will provide guidance on payouts from other business interruption policies
A representative sample of insurers that underwrite policies containing these wordings has now been asked to “assist” the regulator by taking part in the High Court action. They are: Arch; Argenta Syndicate Management; Ecclesiastical; Hiscox; MS Amlin; QBE UK; RSA; and Zurich. However, the regulator said the outcome of the test case would also provide guidance on whether other business interruption policies, not included in this sample, should pay out to customers.
Chris Woolard, FCA chief executive, said: “The court action we are taking is aimed at providing clarity and certainty for everyone involved in these BI disputes, policyholder and insurer alike. We feel it is also the quickest route to this clarity and by covering multiple policies and insurers.” He advised policyholders not to assume a favourable outcome, though — noting that most business interruption policies only cover property damage. Consequently, in a majority of cases, insurers will not be obliged to pay claims relating to coronavirus closures.
Mathew Vincent FT June 1 2020
Business owners’ hopes of making insurance claims for coronavirus disruption will rest on a court case in late July involving eight insurers — including Hiscox, Royal & Sun Alliance and Zurich — the City regulator has announced.