FCA Business Interruption Test Case – Supreme Court Appeal Response

DATE 27th January 2021

The judgement in the Supreme Court which substantially ruled in favour of the FCA is good news for
many businesses that bought an unspecified disease extension.

Not every policy will include this extension, some will specifically Exclude ‘Infection Diseases’.
It is estimated that approx. 370,000 policies will be affected, covering 700 different policy wordings
underwritten by 60 Insurers.

The FCA have provided a link to their website in order to assist policyholders with any queries and
information on proving existence of Covid-19 within the radius:

The Supreme Court has directed Insurers to:

• Make immediate contact with any policyholders whose policy provides indemnity in line
with this ruling, and previously had their claim declined.
• Ensure that valid claims are paid without any unnecessary delay.
• For those policyholders who have not previously made a claim, the clock has restarted and
are advised to immediately make contact with their Insurance Broker, or Insurance

There are a number of Claims Management Companies (CMC) offering to deal with claims on behalf
of Policyholders.

If the policy has coverage, which is valid, in line with this Appeal Decision, there is no need to engage
a Third Party service.

A CMC will charge for their services in the form of either, an up-front fee, or, up to 40% charge of the
total claim payment!

For those Tenants who utilise the services of an Insurance Broker, I would urge you to speak to
them in the first instance. Your Insurance Broker is extremely experience in claims for precisely
this purpose, and will be able to guide and advise you through this process as part of the service
agreement you already have in place.

Some policyholders may believe that the ruling suggests all previously rejected BI claims will now be
paid. It’s important to clarify that this is not the case. The pressures on you as business owners, and
managers, must be enormous and some of the press statements may have encouraged you to
believe that the Supreme Court decision will in some way mean a reversal of all previous claims

Lisa Petherick ACII – Chartered Insurance Broker
Commercial Business Insurance – Science & Technology & Healthtec
07717 776514