Statement from BIBA
The judgment today in the Supreme Court on the FCA’s business interruption test case substantially allowed the FCA’s appeals and dismissed the insurers appeals and is good news for those businesses that had purchased an unspecified diseases extension.
The judgment brings clarity for many of our members’ customers which have been waiting to find our if their claims will be paid.
The ABI has indicated that: “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. All valid claims will be settled as soon as possible and in many cases the process of settling claims has begun.”
We are asking that insurers include brokers in their claims settlement process and that they bring outstanding claims to a swift conclusion.
The judgment is detailed and could have long ranging impacts so we are studying the detail and taking some advice on what this means for brokers. We will of course, issue further information and guidance about what the ruling means for you and your customers as well as managing pandemic risk in the coming weeks.