5th June 2020

UPDATED GUIDANCE: Coronavirus and Business Interruption Cover (FCA Announcement – High Court Test Case)

By Richard Graham
Divisional Director - Claims & Risk Management

As advised in previous updates, the impact of Covid-19 is global and widespread and therefore was never intended to fall under an insurance policy. That said, it is clear that there are a limited number of Insurers where the actual terms, conditions and exclusions contained within certain policies do not make this as clear as they should.

On 1st May, the Financial Conduct Authority (FCA), in response to opinion and pressure from Aston Lark, policyholders and others, announced that they would undertake legal action with a view to obtaining clarity from the Courts on a number of matters.

This latest update from our Head of Claims & Risk Management, Richard Graham, focuses on the recent FCA announcement (1st June), what this means and what Aston Lark has been doing, are doing and will be doing on behalf of our clients.

The fact is that the FCA test case will not change anything for the majority of clients, where they are insured under insurance policies that are, rightly so, extremely clear on the matter. The test case is focused on insurers and policy wordings that offer a degree of ambiguity on Covid-19.

We have already reached out to those clients who are insured under such wordings to invite a claim. This guidance note is particularly relevant to these clients.

The ultimate aim of the case is to seek judgment from the Courts that will help clients, brokers and insurers have a much clearer view of which insurance policies respond to Covid-19 and which do not.

Click here to read the guidance note.

Click here for the FCA’s dedicated webpage relating to the test case. You may also wish to subscribe for email updates from the FCA here.

We have also provided a link here to the Financial Ombudsman Service (FOS) webpage dedicated to COVID-19 and business interruption insurance cases.