The High Court is set to deliver a landmark ruling on the coronavirus pandemic’s impact on insurance claims which could see hundreds of thousands of businesses receive a payout.
The Financial Conduct Authority (FCA) brought a test case earlier this year over the wording of business interruption (BI) insurance policies, which some insurers argue do not cover pandemics.
The city watchdog previously said it was bringing the legal action following “widespread concern” over “the lack of clarity and certainty” for businesses seeking to cover substantial losses incurred by the Covid-19 pandemic and subsequent national lockdown.
According to the regulator, the value of policies likely to be affected by the test case is about £1.2 billion.
link source - Nottingham Post