Initial Reactions to UK Supreme Court’s Ruling on Business Interruption Claims
Insurers, policyholders and industry observers have issued comments on the UK Supreme Court’s ruling that insurers should pay small businesses for many business interruption claims from the COVID-19 lockdowns.
The UK Supreme Court dismissed appeals by six insurers – Hiscox, RSA, QBE, Argenta, Arch and MS Amline – determining that “many thousands of policyholders will now have their claims for coronavirus-related business interruption losses paid.” The insurers had argued that business interruption policies contained pandemic exclusions and should not be covered. No further appeals will be allowed.
The full judgment is available on the Supreme Court website.
Business interruption case: Light at the end of the tunnel for SMEs
(Getty images)
Hundreds of thousands of businesses will today breathe a sigh of relief after the Supreme Court ruled leading insurers must pay out on business interruption policies.
The court “substantially allowed” the appeal brought by the Financial Conduct Authority (FCA) and campaign groups Hiscox Action Group and Hospitality Insurance Group Action.
It brings months of uncertainty for businesses struggling with the implications of lockdown restrictions to an end.
A glimmer of hope for SMEs
The landmark decision has been welcomed by industries across the board as it will likely result in claims being settled for thousands of businesses that were forced to shutter in the first lockdown.
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A woman is reflected in a window as she braves wind and rain while walking toward Tower Bridge in London on Thursday, during England’s third national lockdown to curb the spread of coronavirus. (AP Photo/Kirsty Wigglesworth, File)
LONDON (AFP) Britain’s Supreme Court on Friday ruled that insurers must compensate small businesses forced into last year’s initial coronavirus lockdown, potentially a total payout of $1.6 billion.
The country’s financial watchdog successfully appealed on behalf of the companies, arguing they should be able to claim for the impact of the first U.K. lockdown last year.
The Financial Conduct Authority (FCA) estimates that a combined £1.2 billion ($1.6 billion) could now be paid out.