COVID-19

Customers facing financial difficulty

W/R/B Underwriting understands what a difficult period this is for everyone. If any of our clients are experiencing financial difficulties and are having trouble in paying their premium, we encourage them to contact their broker or intermediary.

We are committed to work closely with our brokers and clients on a case by case basis and offer support where we can during this challenging time.

 

The FCA’s ‘test case’ on Business Interruption Insurance

Earlier this year, The Financial Conduct Authority (FCA) sought legal clarity in relation to Business Interruption (BI) insurance to resolve some of the uncertainty around who and what is covered, or not, for losses resulting from the COVID-19 pandemic by commencing proceedings in the High Court by way of a ‘test case’.

The test case sought to resolve issues of coverage in relation to ‘disease’ and ‘denial of access’ clauses (including any relevant exclusions); and causation.

A total of 17 wordings from 16 insurers were taken forward to the test case. A full list can be found on the FCA website along with a detailed summary of the clauses, definitions and exclusions that were reviewed.

Judgement has been delivered with the High Court finding in favour of the arguments advanced by Policyholders.

The full judgement is available to review on the FCA’s website: https://www.fca.org.uk/news/press-releases/result-fca-business-interruption-test-case

If one or more of the parties decides to appeal the judgment, it is anticipated that the FCA and any relevant insurers would seek to expedite the appeal process in the same way as the original trial.

A further hearing will be held in October before the same Judges. That hearing will consider whether there will be an appeal, what the appeal may cover, and whether the appeal will proceed straight to the Supreme Court.

W/R/B Underwriting will continue to closely monitor the progress and updates from the FCA and the courts, and keep any potentially affected policyholders up to date with material changes.

If you have any queries in relation to the test case, in the first instance please contact your broker or intermediary as detailed within your policy wording. More detailed information can be found on the FCA website.

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