Business interruption claims and COVID-19: Good news for SME’s

Colin Dean October 5, 2020 News, News - Litigation and Dispute Resolution, Team - Litigation

Andrew Koffman

The High Court judgment, on Tuesday 15^th September 2020, in the test case between the Financial Conduct Authority (FCA), on behalf of a number of policyholders, and various insurance companies over business interruption and COVID-19 has been hailed as a lifeline for SMEs.

Many SMEs will be very relieved at the result.  The FCA estimated that 370,000 businesses could be affected by the test case; however not all will have been successful. Two out of 8 insurers successfully defended the claims against them.