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The Supreme Court is still considering the Financial Conduct
Authority s (FCA) test case regarding the validity of
business interruption insurance policies wordings, with a decision
to the crucial issue now promised in the New Year. The FCA
clearly recognises that many businesses are suffering severely due
to the closure or reduction of their ability to trade due to the
coronavirus. The announcement that more areas, including
London, are to incorporated into the tier three bracket of
restrictions amplifies the urgent need to know whether they can
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On 11 December, the Financial Conduct Authority published draft guidance on how the presence of COVID-19 can be proved where that is a necessary element of establishing a business interruption claim on a property damage policy. The draft has been launched as a consultation exercise, with the period for comment ending on 18 January 2021.
In mid-November, the UK Supreme Court heard appeals on a number of issues in the FCA’s COVID-19 business interruption insurance test case. The Supreme Court has just announced that its judgment will not be available before January 2021. The FCA has said that issues relating to the presence of COVID-19 were not subject to the appeal and that therefore the Supreme Court’s ruling is not expected to affect the guidance.