It seems there’s a significant development for businesses that paid for the benefit of enhanced business interruption insurance only to be faced with rejected claims by their insurers following the COVID-19 pandemic.  

In a test case bought by the Financial Conduct Authority, the UK's financial regulator, the court has found in favour of policyholders on most of the key issues.  Now those policyholders should carefully review the court ruling, which extends to 160 pages, to assess the impact this will have on their claim depending on the wording of their policy.

The good news is that this ruling should bring clarity and the end to insurance companies putting their own interpretation on policies to resist claims. Instead they will be compelled to apply the principles laid down by the court, which in the main favour the policyholder rather than the insurer.

And let’s not underestimate its significance. For many businesses, the outcome of this will determine whether they are able to continue trading.