3 July 2020
On 1 May 2020, the Financial Conduct Authority (FCA) announced that it intended to obtain a court declaration to resolve uncertainty around whether certain non-damage business interruption insurance policies provided cover for losses arising as a result of COVID-19.
The issues relating to the impact of COVID-19 on business interruption policies are complex.
Following consultations with Insurers, policyholders and Insurance Brokers, the FCA has chosen a selection of policy wordings which it considers is representative of the most important issues in the dispute between policyholders and Insurers.
The Insurers involved are:
- Arch Insurance UK Ltd
- Argenta Syndicate Management Ltd
- Ecclesiastical Insurance Office Plc
- Hiscox Insurance Company Ltd
- MS Amlin Underwriting Ltd
- QBE UK Ltd
- Royal & Sun Alliance Insurance Plc
- Zurich Insurance Plc
The Declaratory Judgement will apply to ALL Insurers and not limited to those mentioned above.
The expected timetable of events going forward, is for the hearing of the Test Case to start on 20 July 2020 and regular updates are available on the FCA website