Judges say insurers should cover SME business interruption insurance claims
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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.’
About the Author
Paul Newbold
Partner
After qualifying with KPMG where he gained significant audit experience, Paul joined Torgersens in 1991 and became the firm’s audit partner in 2000.
Paul employs his broad range of financial skills to provide commercial and accounting advice to a range of owner-managed businesses in the independent retail, education and professional services sectors. He also has extensive experience dealing with charities, Registered Social Landlords and not-for-profit organisations and co-operatives.
Outside of work, Paul likes to visit Eastern France and South-West German and read novels by David Morrell, Michael Blake and Harper Lee. He also likes watching films, his favourite is The Shawshank Redemption.
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