Business Interruption (BI): Covid-19: Financial Conduct Authority (FCA) Court Action

Monday 13th July, 2020

The coronavirus pandemic has placed a spotlight on the cover provided by non-damage BI cover. The FCA is intending to seek clarity and certainty around this issue by holding a “test case” action in court against what they consider to be a range of non-damage BI policy wordings that are representative of those used by the insurance industry. The aim of this test case is to determine in court the interpretation of certain clauses within policies that include non-damage business interruption. The FCA says:

“acting in the public best interest, the FCA will put forward policyholders’ arguments to their best advantage. We are aiming to obtain legal guidance in this way quickly and at a lower cost to policyholders than would be the case if they took their own court actions."

If you have submitted a Covid-19 related non-damage BI claim, your insurers will be contacting you by 15 July 2020, either through ourselves or directly, to confirm whether or not your policy is affected by the ‘test case’.

Further information on this subject can be found at:

We recommend viewing this link and suggest that you subscribe for email updates on this matter from the FCA.

We will be regularly updating our website with information relating to the ‘test case’.

If you are unsure how this impacts you, please contact your usual insurance adviser.