Earlier this year insurers denied nearly all the business interruption claims submitted in relation to COVID-19. However, following expedited proceedings brought by the Financial Conduct Authority which regulates the insurance industry, the Court has given a judgment which rejects a number of the arguments used by insurers to deny coverage, and some policyholders who had claims previously denied should now be able to obtain payment for their losses from insurers.

It is likely that insurers will continue to argue that wordings not specifically covered by the recent case are not affected. It is also likely that the judgment will be the subject of an expedited appeal to the Supreme Court.

The thousands of businesses with disease or non-damage denial of access wordings in their policies should now take immediate action to review their policy and take all necessary steps to maintain and pursue their claim.

Great care should be taken to ensure that policy conditions in relation to notification and provision of information are met to avoid alternative arguments to deny coverage.

Keystone’s coverage lawyers would be pleased to work with clients’ brokers or direct to assist any businesses wishing to pursue a claim and can be contacted on the details below:

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This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.