Update regarding Business Interruption Claims arising from Covid-19 Pandemic


(This notice is for those of our Commercial Insurance products policyholders; whose policy cover extends to include Business Interruption arising from Infectious Disease &/or Denial of Access)


The Financial Conduct Authority (FCA) has commenced a test case in the High Court to determine how certain Non Damage Business Interruption insurance policies should respond to losses relating to the Covid-19 pandemic. Once the hearing is concluded, a Court ruling will be made.


The test case is not intended to encompass all possible disputes, but to resolve some key contractual uncertainties relating to ‘disease’ and ‘denial of access’ clauses and general ‘causation’ issues to provide clarity for policyholders and insurers. Most of our standard policies are not affected by the outcome of the test case.


According to the timetable published by the FCA a final resolution is planned for the 30th July. The test case will involve consultation with policyholders and insurers and any ‘pleadings’ will be made public via the FCA website.  Once the ruling is released, we will undertake a review of our wordings to see what impact the FCA test case has on our claims decisions and we will process these in accordance with the FCA guidelines.


Where relevant, we will be in touch should there be any change to previous communications.


The test case timetable is outlined below:

9 June FCA started claim in the High Court
16 June Case management conference, at which the court fixed the timetable for the case and other procedural matters
23 June Insurers filed Defences
26 June Further case management conference, at which the court will deal with any outstanding procedural matters to ensure the case is ready for trial
3 July FCA files Reply
1st half July Skeleton arguments and replies served
20-23 July and 27-30 July 8 day court hearing before Lord Justice Flaux and Mr Justice Butcher 


We welcome the actions taken by the FCA as these will allow for a consistent and quicker response from insurers in line with our company values of providing a honest and reliable service and to efficiently settle valid claims that are covered by policies that we provide.


We will continue to post key developments from the test case on our website and keep those customers impacted by the test case informed throughout the process. Customers and brokers can also subscribe to email updates from the FCA on the test case.


Below are other useful links relating to the Coronavirus pandemic:


FOS Link

Financial Ombudsman Service (FOS) website.


ABI Link


Government Links




Link to our Bulletin on Unoccupied Premises


Link to our page about premium holiday, OR, alternatively, the below text:

The financial impact of coronavirus is affecting businesses across the UK .

The government is offering a range of support packages, details of which can be found on the government website here.

If you’re struggling to keep up with your monthly payments, please call us on 020 78391888.

Our phone lines are open Monday to Friday, 9.15am to 5pm.