FCA lawyers tell High Court government advice had same effect as legislation

'In a High Court test case to decide billions of pounds worth of claims on “business interruption” policies, lawyers for the UK’s financial regulator — acting on behalf of small and medium-sized enterprises — insisted that government guidance in March had the same effect as legislation in forcing shops, restaurants and leisure facilities to close. As a result, they were entitled to claim if they were covered for losses caused by the action of a “public authority”.'

Matthew Vincent in the FT

The case is due to continue for two weeks and a judgement is expected by September at the earliest. 

For now, many insurers will be making contingency planning both for those claims already lodged and for a potential surge.