The High Court has backed the Financial Conduct Authority (FCA) in their test case relating to insurers covering SME business interruption insurance claims made during the pandemic.
The FCA’s case was brought after 400 SMEs made complaints during July that many insurers had not supported their business interruption insurance claims. The case centred around gaining clarity about what to do regarding pay-outs and future coverage.
Responses from two insurers (Hiscox and RSA) indicate that the High court’s verdict will cost them £200m to cover claims.
Paul Newbold, Partner at Torgersens said of the decision; ‘This is a milestone for small businesses. In an already harsh difficult trading land-scape it is only right that insurers take heed of the ruling and settle claims as soon as it’s practical to do so.’
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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