The FCA Business Interruption Insurance Case

Here’s a basic outline of what has been going on and what has happened today (15th Jan 2021) from the lawyers who act for the FCA, download their briefing document HERE

The FCA case had been built around various wordings from the insurance policies of 8 insurers, the court was to decide what they may or may not mean. Some of the policies being examined by the court do contain similar wording to those examined by legal experts on behalf of hundreds of publicans, although the policies in the FCA case are not generally ones encountered in the licensed trade. In the previous High Court award the court had found in favour of the FCA, this was then appealed by the insurance companies and today the Supreme Court handed down its verdict.

 The FCA (Financial Conduct Authority) has been victorious in its claim against 8 insurers today, the Insurance company appeals were dismissed whilst appeals by the FCA were upheld.


What is the upshot & what should I do if I have not submitted a claim yet or quantified it?

  • Positive findings on the issues before the court today have helped the insured business owner hugely in claiming what is rightfully theirs, the case has exposed the insurance companies’ tactics in denying an earlier payout.  We expect there will be further work to do to obtain proper financial recovery and maximize claims, the insurers are bound to push back on issues upon which the court has not expressed a view and or reduce their offer to the policyholders.
  • This victory ensures the insurance sector as a whole will have to follow the guidance of these judgments, accept the result, and begin the work of calculating quantum for the claims received.
  • If you have not already made a claim for business interruption loss and/or loss of stock, you should do so now.
  • If you have made a claim, you should quantify it now if possible, if you have not already done so, present the insurer with full particulars and avoid any further delays in recovering your insured loss.

Chris Wright PAS said: “The judgment is a massive step forward and should put fire in the belly of all businesses to demand their claims are paid. The expectation is that insurers will not cause further distress by gaming this judgement with unnecessary delays and spurious, technical legal arguments.”

If you are stuck, say facing a blanket refusal to accept the result or payout on your claims note you can obtain specialist help and representation from Cerulean Law HERE