UK Supreme Court insurance ruling ‘decisively removes roadblocks for policyholders,’ says finance watchdog 

The Financial Conduct Authority (FCA) last year brought a test case, which could affect around 370,000 businesses, over the wording of business interruption insurance policies, which some insurers argued did not cover the Covid-19 pandemic.

In September, the UK High Court ruled on several “lead” insurance policies issued by eight separate insurers largely in favour of the FCA, which welcomed that judgment as “a significant step in resolving the uncertainty being faced by policyholders”. Picture: PA

The Supreme Court’s ruling in a landmark £1.2bn (€1.3bn) legal battle over businesses’ ability to claim on insurance for coronavirus-related disruption “decisively removes many of the roadblocks to claims by policyholders”, a financial watchdog has said.

The British Financial Conduct Authority (FCA) last year brought a test case, which could affect around 370,000 businesses, over the wording of business interruption insurance policies, which some insurers argued did not cover the Covid-19 pandemic.