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.
Ahead of Monday’s court session, the FCA said that as many as 370,000 policyholders could be affected by the outcome of the litigation — and each successful claim could potentially run to tens of thousands of pounds. Previously, the Association of British Insurers had suggested that £900m would be paid out by its members on businesses interruption policies.
https://www.ft.com/content/87eafb96-713b-477d-bfaf-0d33a609f478
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