Business interruption policies now cover COVID-19

20th September 2020

The Financial Conduct Authority (FCA) has won a test case on the legal clarity of business interruption cover. The FCA reviewed more than 500 policies from 40 insurers and identified a sample of 17 policy wordings that highlighted the key areas of dispute. The test case also clarified that the COVID-19 pandemic and the Government response was a single cause of the covered loss. This is a key requirement for claims to be paid even if the policy provides cover. The case outcome should help policyholders and insurers identify which business interruption policies provide cover for the coronavirus pandemic and which do not.