The Supreme Court has mostly accepted an FCA appeal which opens the door to Covid-19 business interruption (BI) insurance payouts.
An estimated 370,000 SME policyholders could be helped by the judgment.
Last year the FCA launched a business interruption insurance test case to seek a judicial judgment on whether insurers should pay out after many argued Covid-19 interruption was not covered by policies.
The Supreme Court today delivered its judgment on the test case and substantially allowed the FCA’s appeal on behalf of policyholders.
The FCA says this should complete the legal process for impacted policies and means that many thousands of policyholders will now have their claims for coronavirus-related business interruption losses paid. Payouts could total millions of pounds and help thousands of small firms as well as preserving jobs.
Sheldon Mills, executive director, consumers and competition at the FCA, said: “Coronavirus is causing substantial loss and