FCA Business Interruption Test Case Update

We're writing to our very small number of policyholders with COVID-19 related non-damage BI claims.

Posted on 21st September 2020 Tagged in Commercial Lines Regulation & Change
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FCA Business Interruption Test case update

With the Coronavirus pandemic causing so much disruption, many customers have considered if they can claim for Business Interruption (BI). We know this is a difficult time for them, and it may be stressful for you too – we appreciate you’re handling more enquiries than usual.

Unfortunately, there’s a lot of variation in the types of BI cover provided by different insurers, and the wordings of that paperwork are necessarily complex. This has led to concerns about a lack of clarity.

FCA Business Interruption Test Case

As a recap, the Financial Conduct Authority (FCA) asked that insurers make policyholders (with non-damage BI claims) aware that the FCA is seeking legal clarity through the means of a ‘test case’. The outcome of the test case aimed to resolve any contractual uncertainty around the validity of BI claims.

The Judgment on the test case was published on 15 September 2020.

To ensure we are doing the right thing for our customers, and in accordance with the FCA’s requirements, we’ve completed a comprehensive review of all non-damage BI policy wordings. We are confident that our handling of claims during this difficult time has been fully aligned to our policy wordings and that our customers have been treated fairly.

Informing your customers

In accordance with the requirements, we are writing to our very small number of policyholders with COVID-19 related non-damage BI claims or complaints which we previously determined could be potentially affected by the test case outcome. Where we have written to the customer, we have also notified the relevant broker. 

Please visit the FCA’s website for more information.


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