This week, 2nd October 2020, sees a High Court hearing, to consider any applications to appeal from Insurance Companies regarding pay-outs to businesses in connection with business interruption insurance policies, following the Covid-19 pandemic.
Many businesses have made claims to their insurance companies during the Covid -19 pandemic, for loss of income and many are reliant on a pay-out to keep them afloat. The claims are for loss of income, due to the closure of their business during the pandemic and lockdown. The Financial Conduct Authority (FCA) is representing policy holders in this landmark case and obtained judgement against certain insurance companies in the High Court in September 2020, which was ruled on sample business interruption contracts.
The eight defendant insurers are Arch, Argenta, Ecclesiastical, Hiscox, MS Amln, QBE, RSA and Zurich. Insurers argue that they should not be required to pay claims where firms chose to close due to the pandemic rather than being legally required to shut.
There is expected to be around 370,000 claims to be affected by this outcome. If the High Court does grant permission to an appeal at the upcoming hearing this week, the case is expected to go to the Court of Appeal and then straight to the Supreme Court, which could be heard before Christmas.
If you have been affected by this and need some advice, please contact Summerfield Browne Solicitors on 0800 567 7595 or email us on enquiries@summerfieldbrowne.com
