Many of you will have seen, heard or read about the discussions in respect of Business Interruption insurance cover in the wake of the COVID-19 pandemic and whether insurers are or are not covering the clients consequential loss of income.
We have been working with our colleagues at the British Insurance Brokers Association (BIBA) and our trade network Broker Network to press for insurers to meet any loss of income where a relevant Business Interruption cover is in place with our clients. We have also approached the Financial Ombudsman Service (FOS) to adjudicate around the application of cover. We have not been alone in taking this robust approach. Our Regulator the Financial Conduct Authority (FCA) has now taken up the matter on behalf of the insurance industry and clients by seeking a Judicial decision on whether insurers who have issued policies are liable, or not measured against the specific policy wording which they have. That case is to be heard during July.
Full details of the FCA’s approach and the detailed timeline can be found here https://www.fca.org.uk/firms/business-interruption-insurance
As matters unfold we will keep you informed via our website.