Lifeline for up to 370,000 UK firms as court backs COVID-19 insurance claims
The Supreme Court has handed a lifeline to many UK firms in a battle over COVID-19 insurance cover, after dismissing appeals by insurers.
Around 370,000 firms could be affected by a ruling on Friday, part of a test case looking at firms’ entitlements to payouts over the impact of government lockdown restrictions.
Many hospitality and other firms found themselves denied cover under their business interruption insurance policies for substantial losses suffered during the pandemic.
The Financial Conduct Authority (FCA), Britain’s financial watchdog, brought a legal test case on behalf of many firms last year, in a bid to clarify how policies should apply.
The High Court ruled in the case in September, but its mixed verdict failed to hand either side a clear victory and parties on both sides lodged appeals on different points.
