Business Interruption Claims And COVID-19: An Update

In January this year, we reported on the business interruption (BI) test case brought by the Financial Conduct Authority and the judgment subsequently handed down by the Supreme Court – The Financial Conduct Authority (FCA) v Arch Insurance (UK) Ltd & Ors [2020] EWHC 2448 (Comm). 

Proceedings had been brought by the FCA, in the hope that the courts would provide some clarity on the relevant legal principles facing insurers and policyholders during the COVID-19 pandemic. Four months later, we look at the practical implications of the judgment and consider how future disputes may be treated as a result.

The Test Case: a recap

At first instance, the High Court was tasked with considering the correct interpretation of: