SMEs win Business Interruption Insurance case

In a Test Case brought by the FCA, the High Court has ruled in favour of SMEs that their Business Interruption Insurance should cover closures forced by Covid.

Background

Many businesses who held business interruption insurance were distressed to be told by their insurers that their policies did not cover them for the Covid lock downs.

The Financial Conduct Authority brought a test case to the High Court and judges have thrown out appeals by six insurance companies, largely finding in favour of the FCA.

What this could mean for your business

The FCA has said that over 370,000 business will be affected by the outcome of the action they brought and have estimated claims to be around £1.2 billion.

FCA has made available a policy checker which can be used to see if your business insurance is included.

Business owners should now check their business insurance policies and where they have been forced to close due to Covid make a claim to their insurers.