FCA Landmark Business Interruption Test Case - Potential For Complex Litigation Remains

Despite a Supreme Court judgment in the Financial Conduct Authority's (FCA) business interruption test case being overwhelmingly in support of the policyholders, it seems there is still considerable mileage for disputes over coverage to continue and to eventually reach the courts. The FCA brought the test case to examine the wordings within the policies and to clarify for all concerned whether or not the insurers were liable to pay out on business interruption clauses.

Welcome as the Supreme Court ruling was to businesses there are still some areas that have not been sufficiently clarified, leaving the door open for disputes. It would seem that businesses initial elation at the Supreme Court decision was premature. The question arose almost immediately as to whether the financial help provided by the government should be regarded as part of the business income has come into question. Once the relevant insurers found that they were liable under the business