The financial regulator, the Financial Conduct Authority (FCA), has been challenging insurers on whether they can wriggle out of business interruption insurance claims during the coronavirus pandemic. This is a fight that the FCA is determined not to let go of and so it took the step of preparing to take a test case to court, where it is seeking a clarification from the court on whether insurers’ policies allow them to refuse business claims related to the coronavirus pandemic. The hearing is scheduled for late July.
The test case will look at 17 representative policy wordings and will bring eight defendants before the court, namely: Arch Insurance, Argenta Syndicate Management, Ecclesiastical Insurance Office, Hiscox, MS Amlin Underwriting, QBE, Royal & Sun Alliance, and Zurich.
However, in a major u-turn, a number of insurers have now admitted they are liable to pay company owners under business interruption insurance policies.
Dean Dunham commented “Firstly, well done to the FCA for taking these insurers to task, although clearly the battle is not yet over and I eagerly await the court hearing in July. I urge those insurers who continue to fight the FCA to re-think their position as they are clearly in the wrong, and should follow those insurers who have now seen sense.”
For anyone seeking a holiday refund, this may convince your provider to pay out, considering they can now make a claim on their insurance policy. We will keep following this story.