Business Insurance Coronavirus Claim
Business interruption insurance coronavirus claims reviews tips and advice UK
The Financial Conduct Authority FCA brought a test legal case against insurers in UK. The result would affect close to half a million businesses and could lead to billions of pounds of insurance claims paid to business leaders in UK. The UK courts have found largely in favour of UK businesses.
The FCA brought the legal case against eight insurers including Hiscox RSA QBE and Zurich in June to clarify whether 21 types of business interruption BI policy wordings should pay out for closures and disruption caused by the coronavirus pandemic.
The FCA has estimated the legal test case outcome could affect more than 60 insurers and 700 different types of policies because many insurance policies have similar wording. However insurers say that not all businesses will benefit from the legal decision. In other words there will be winners and losers from the legal judgement.
Small businesses in UK may now be able to survive and prosper with the aid of insurance payouts. The FCA legal test case was designed to quickly clarify whether the pandemic and a government lockdown in March should trigger BI policies which provide cover when insured premises cannot be used because of restrictions imposed by a public authority and in the event of a notifiable disease or infection. Insurers said the policies did not cover pandemic but the courts now say they do cover pandemic. If the judgment is appealed it could leapfrog straight to the Supreme Court the highest UK court to reduce delay for buckling businesses.