FCA – Business Interruption Insurance Test Case – Judgment

On 15 September the High Court handed down its judgment in the Financial Conduct Authority's COVID-19 business interruption insurance test case. While there are mixed results in relation to a large number of questions, the court has ruled in favour of the policyholders' arguments on most of the issues.

The FCA has claimed the judgment as a victory. In a statement it said:

".The Court found in favour of the arguments advanced for policyholders by the FCA on the majority of the key issues.We brought the test case in order to resolve the lack of clarity and certainty that existed for many policyholders making business interruption claims and the wider market. We are pleased that the Court has substantially found in favour of the arguments we presented on the majority of the key issues. Today's judgment is a significant step in resolving the uncertainty being faced by policyholders."