The Supreme Court’s decision on Friday to allow an appeal that could see businesses claim more than £1.2bn from their insurance for coronavirus related disruption will be welcomed by an estimated 370,000 firms, including a number of estate agencies, across the country.
Having dismissed the appeals of six insurers, the Supreme Court has now urged all insurance companies to contact their customers as soon as possible and to settle their Covid-19 related claims.
The Financial Conduct Authority (FCA) has confirmed that it will be working alongside insurance companies to give effect to this decision.
Paul Foster, Federation of Small Businesses’ development manager, commented: “Policy holders should contact their insurance company or broker to check eligibility – not all business interruption policies are likely to be covered by this verdict, but certainly those with infectious diseases specifically mentioned in the policy should be covered, as well as some with cover relating to ‘denial of access’.
“We believe The FCA will publish guidance for businesses with policies and a list of business interruption policy types that potentially respond to the pandemic.”
It is not clear at this stage if the decision will result in further claims.
Huw Evans, director general of industry group the Association of British Insurers, said: “Insurers have supported this fast-track legal process every step of the way and we welcome the clarity that the judgment will bring to a number of complex issues.”
“Customers who have made claims that are affected by the test case will be contacted by their insurer to discuss what the judgment means for their claim,” he added. “All valid claims will be settled as soon as possible.”
via Property Industry Eye