High Court finds in favour of policyholders

At the height of the lockdown, there were a large number of disputes between businesses and insurers over whether their cover included the impact of Coronavirus.

In response, the Financial Conduct Authority (FCA) brought a test case, asking the High Court to decide on the correct interpretation of a selection of policies.

On Tuesday, the High Court ruled that the disease clauses in some business interruption policies should have meant that those businesses were covered. This brings some guidance to how business interruption insurance wordings should operate in the context of the Coronavirus pandemic. However, given that this is a test case on a small sample of policies, the majority of business interruption policies will not be affected. Find more on the High Court Ruling

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