• Home
  • Investment
    • Multi-asset
    • DFM & Model portfolios
    • Platforms
    • Ratings, Research & Risk
    • Tax-efficient investing
    • Markets
    • Companies
  • Retirement
    • Pensions
    • Income
    • Investment
    • Regulation
    • Estate planning
    • Equity release
  • Your profession
    • Adviser tips
    • Business models
    • Companies
    • People
  • Regulation
  • Tax planning
  • Protection
  • Technology
  • Smarter Business
  • Events
  • Whitepapers
  • Industry blogs
  • Newsletters
  • Multi-Asset Review
  • ESG
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
     
    •  

      Personalise your on site experience

      Download and use the apps

      Access your subscription from outside of the office

      Get relevant news and insight straight to your inbox

      Sign in
     
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Events
    • Upcoming events
      event logo
      Professional Adviser Awards 2021

      Professional Adviser is once more issuing the call for adviser businesses from across the UK to showcase their knowledge, skills and commitment to client care by entering our 2021 Awards.

      • Date: 11 Mar 2021
      • ONLINE, ONLINE
      event logo
      Professional Adviser Multi-Asset Masterclass 2021

      Delivered online over two half-day sessions, the Multi-Asset Masterclass will look to provide a case for multi-asset investing as well as an outlook for the sector over the year ahead.

      • Date: 17 Mar 2021
      • ONLINE, ONLINE
      event logo
      Professional Adviser Working Lunches 2021

      A series of invitation only "meet the manager" virtual lunches to discuss how a multi-asset strategy can benefit your clients and your business.

      • Date: 24 Mar 2021
      • ONLINE, ONLINE
      event logo
      Professional Adviser ESG Masterclass 2021

      Professional Adviser is excited to launch the new ESG Masterclass, taking place live online from 28th - 29th April 2021. Delegates attending this event will benefit from thought-provoking presentations, informative Q&A sessions and structured CPD hours.

      • Date: 28 Apr 2021
      • Live Online, Live Online
      View all events
      Follow our events

      Sign up to receive email alerts about our events

      Sign up

  • Whitepapers
    • Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Industry blogs
  • Multi-Asset Review
  • ESG
Professional Adviser
Professional Adviser
  • Home
  • Investment
  • Retirement
  • Your profession
  • Regulation
  • Tax planning
  • Protection
  • Technology
  • Smarter Business
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
 
  •  

    Personalise your on site experience

    Download and use the apps

    Access your subscription from outside of the office

    Get relevant news and insight straight to your inbox

    Sign in
 
  • Trending now
  • Phoenix buys SL brand
  • IFA Finura makes first acquisition
  • Openwork rebrands to partnership
  • Protection

Supreme Court 'substantially' rules in favour of business interruption claimants

Completes legal process

Supreme Court 'substantially' rules in favour of business interruption claimants
  • Adam Saville
  • Adam Saville
  • @AdSaville_COVER
  • 15 January 2021
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

The Supreme Court has substantially allowed the FCA's appeal on behalf of BI policyholders, following the financial services regulator's decision to bring the test case to address uncertainty surrounding business interruption coverage during the coronavirus pandemic.

While the 112-page ruling from the Supreme Court is considered ‘complex', the FCA has confirmed that a large number claims for coronavirus-related losses will be paid as a result.

Sheldon Mills, executive director, consumers and competition at the FCA, commented: "Coronavirus is causing substantial loss and distress to businesses and many are under immense financial strain to stay afloat. This test case involved complex legal issues. Our aim throughout this test case has been to get clarity for as wide a range of parties as possible, as quickly as possible, and today's judgment decisively removes many of the roadblocks to claims by policyholders.

Related articles

  • MPs to investigate advice in ongoing pensions freedom inquiry
  • FOS partially upholds ongoing advice complaint against TenetConnect
  • FCA: Firms must understand and act to help financially vulnerable
  • Jupiter commits to net zero across £55.7bn investment range by 2050

"We will be working with insurers to ensure that they now move quickly to pay claims that the judgment says should be paid, making interim payments wherever possible. Insurers should also communicate directly and quickly with policyholders who have made claims affected by the judgment to explain next steps.

"As we have recognised from the start of this case, tens of thousands of small firms and potentially hundreds of thousands of jobs are relying on this. We are grateful to the Supreme Court for delivering the judgment quickly. The speed with which it was reached reflects well on all parties."

Insurer appeals dismissed

In September last year, the High Court ruled that most of the disease clauses and certain prevention of access clauses, which included 12 policy types from a sample of 21 issued by six insurers, did provide appropriate cover, however the six insurers appealed those conclusions for 11 of the policy types,

Those appeals have been dismissed by the Supreme Court for different reasons than those of the High Court, ruling that cover may be available for partial closure of premises (as well as full closure) and for mandatory closure orders that were no legally binding.

It also decided that valid claims should not be reduced because the loss would have resulted in any event from the pandemic and that two additional policy types from insurer QBE do provide cover.

This will therefore result in more policyholders having valid claims and some pay-outs will be higher.

Case closed

Today's judgment brings an end to legal arguments under 14 types of policy issued by six insurers and a substantial number of similar policies in the wider market which will lead to claims being possible, the FCA said.

The regulator added that the decision to bring the test case in effect has removed the need for policyholders to resolve claim disputes directly with insurers.

Around 370,000 policyholders were identified by the FCA as holding 700 types of policies issued by 60 insurers that may be affected by the outcome of the initial FCA test case, many of them SMEs.   

Matt Connell, director of policy and public affairs of the Chartered Insurance Institute, said: "This pandemic has had a disastrous effect on our society, our way of life and our economy, so I genuinely hope this will provide a conclusion to a difficult journey many people and businesses have had to experience over the last year."

"This judgement will have huge ramifications for insurance beyond business interruption and it is important this is also looked at as openly as possible."

"Rest assured insurance professionals will be examining how this affects policies and will reach out to policyholders about what this means for them, indeed in some cases this process will have already begun."

"The CII has long discussed the importance of trust and confidence in insurance and we believe both can be restored if this process remains open and transparent to the public. We recently released guidance in collaboration with the ABI, BIBA, and our members, to support professionals close the gap between what customers expect insurance products to do and what they deliver, and we will continue to engage on this matter."

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Protection
  • Business Interruption
  • test case
  • FCA
  • CII
  • coronavirus
  • Supreme Court

More on Protection

Life insurance broker Renew Life to enter into administration

PI insurance revoked amid market ‘nervousness’

  • Protection
  • 07 January 2021
Debbier Kennedy is head of protection for LV=
LV= buyer Bain Capital 'very supportive' of firm's protection plans

‘A great outcome’

  • Pensions
  • 15 December 2020
"At St. James's Place, we are not just paying lip service to signposting. We have put our money where our mouth is and in 2018 acquired FutureProof" - Tony Müdd
Tony Müdd: Why SJP acquired Future Proof and the benefits of signposting

‘Either write it or refer it. Do not ignore it’

  • Protection
  • 26 October 2020
Woman found guilty of sawing off own hand for pay-out

Sentenced to two years in prison

  • Protection
  • 14 September 2020
Life insurers paid out £90m during Covid-19 crisis

Equivalent of £980,000 a day

  • Protection
  • 14 August 2020

More news

MPs to investigate advice in ongoing pensions freedom inquiry
  • Your profession
MPs to investigate advice in ongoing pensions freedom inquiry

Deadline 15 May

  • 23 February 2021
FOS partially upholds ongoing advice complaint against TenetConnect
  • Regulation
FOS partially upholds ongoing advice complaint against TenetConnect

Pension switch glitch

  • 23 February 2021
Darius McDermott: Is Asia ready to lead global markets?
  • Investment
Darius McDermott: Is Asia ready to lead global markets?

Outlook for Asia

  • 23 February 2021
FCA: Firms must understand and act to help financially vulnerable
  • Regulation
FCA: Firms must understand and act to help financially vulnerable

Regulatory guidance

  • 23 February 2021
Jupiter commits to net zero across £55.7bn investment range by 2050
  • Investment
Jupiter commits to net zero across £55.7bn investment range by 2050

Asset manager joins Good Work Coalition

  • 23 February 2021
blog comments powered by Disqus
Back to Top

Most read

Surrey financial planning firms merge and look to avoid minimum portfolio sizes
Surrey financial planning firms merge and look to avoid minimum portfolio sizes
FOS partially upholds ongoing advice complaint against TenetConnect
FOS partially upholds ongoing advice complaint against TenetConnect
Phoenix buys Standard Life brand
Phoenix buys Standard Life brand
From Openwork to The Openwork Partnership: Brand experts assess the change
From Openwork to The Openwork Partnership: Brand experts assess the change
Only three advice firms applied for pension transfer permissions in 2020
Only three advice firms applied for pension transfer permissions in 2020
  • About Us
  • Contact Us
  • Marketing solutions
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

Incisive Footer Logo

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading