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U.K. court deals blow to insurers in COVID-19 case

The court's ruling states that most, but not all, of disease clauses in the insurance policies considered provide coverage.

The Royal Courts of Justice in London, which houses the High Court and Court of Appeal of England and Wales. (Photo: Wikipedia) The Royal Courts of Justice in London, which houses the High Court and Court of Appeal of England and Wales. (Photo: Wikipedia)

London’s High Court has handed down its judgment in the Financial Conduct Authority’s (FCA) business-interruption insurance coverage test case. After considering the arguments by the FCA, the Court found in favor of the policyholders on the majority of critical issues.

In bringing the test case, the FCA’s objective was to clarify key issues of contractual uncertainty for policyholders and insurers. To do this, the FCA selected a representative sample of policy language from eight volunteer insurers. The FCA estimated that 700 types of policies across at least 60 different insurers and 370,000 policyholders could be affected by the outcome of the test case. The FCA aimed to argue the policyholder’s side to their best advantage in the public interest.

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Hannah Smith JD

 

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