COVID 19 – Business Interruption Claims or Complaints with no associated property damage
On the 17th June, the Financial Conduct Authority (FCA) issued final guidance to insurance companies and intermediaries regarding a test case aimed at bringing about certainty with regard to business interruption insurance claims for UK policyholders and UK issued policies arising out of the Covid 19 pandemic: https://www.fca.org.uk/publication/finalised-guidance/finalised-guidance-bi-test-case.pdf
The action taken by the FCA reflects the numerous instances, widely reported in the press, where claims for business interruption have been made but subsequently repudiated by a limited number of insurers. We recommend that you carefully read the above guidance for further detail. The test case will only impact a very small number of commercial insurance policyholders where ‘non-damage’ business interruption cover is included in the policy wording. It is important to note that litigation of this nature tends to be inherently uncertain, and even though your insurance policy may have been included in the test case, it does not indicate that your claim will ultimately be successful. What is encouraging, however, is that an independent legal process is being followed to bring a conclusion to this matter on behalf of all policyholders affected.
The FCA guidance places an obligation on insurers, from the 17th June, to promptly update all policyholders, with relevant non-damage business interruption policies, about the test case; including key steps, a likely timetable, and its implication for existing and potential claims.
We have been approached by the following Insurer(s) to request that we inform the policyholders, via our website, who may be affected that placed business via ourselves of the following:
ERGO Versicherung AG:
If your policy is underwritten by Ergo, please click here for further information about the FCA Test Case on Business Interruption Insurance.
If your claim or complaint has been affected you will receive further individual updates in due course and we will be working with insurers to identify and notify all affected policyholders in accordance with the above. In these extraordinarily difficult times we remain committed to providing the high level of advice and service that you would usually receive, albeit for the time being this continues mainly through online meetings and over the phone. Should you have any queries in respect of this matter and the FCA test case please speak to your usual adviser.