Update on FCA test case: The validity of Business Interruption claims during the pandemic

At Adler Insurance Brokers, we fully appreciate what a challenging and difficult time this has been for all our valued clients. The coronavirus pandemic has led to widespread disruption and business closures resulting in substantial financial loss for many.

Within our industry, the pandemic has resulted in heavy focus on the interpretation of policy wordings for business interruption (BI) claims related to COVID-19. There has been widespread concern about the lack of clarity and certainty for some customers making claims under their BI insurance policies, and the basis on which insurers are making decisions in relation to such claims. As a result, the Financial Conduct Authority (FCA) is undertaking a test case in the High Court to examine how insurance policies respond to non-damage business interruption COVID-19 related claims, and will seek to give clarity on how such claims should be considered. Once the hearing is concluded, a Court ruling will be made and formally released.

On receipt of this ruling and guidance notes from the FCA, insurers will undertake a review to see what impact these have on their claims decisions and will take any action required in accordance with the FCA guidelines.

Adler Insurance Brokers welcomes the steps taken by the FCA to undertake the test case. This exercise will bring greater clarity and certainty for ourselves, insurers and most importantly, our clients. We have clear sight of our clients who have made BI claims that may be impacted by the test case outcome, along with their individual claim circumstances and the relevant policy wording that applies. We have taken steps to fully prepare for the outcome of the court ruling, and we are supporting our affected clients throughout the process.

If you are an Adler client and have any questions related to BI cover, claims or the test case activity, please give us a call and one of our team will be happy to help.


Main Office: 0121 764 75500 | info@adlerinsurance.co.uk | www.adlerinsurance.co.uk

Katie Goodman