FCA business interruption test case
On 9th June 2020, the Financial Conduct Authority ("FCA") issued proceedings in the High Court of England and Wales to commence a test case in respect of business interruption policies that provide cover in circumstances where there has been no physical damage to the insured property. The aim of the test case is to resolve contractual uncertainty around the validity of many business interruption claims arising from the coronavirus pandemic.
The FCA has involved a number of insurers as parties in the test case. Although Euna Underwriting is not a named party in the test case, it supports the FCA’s aim to achieve clarity for all concerned in this unprecedented situation. The test case is designed to achieve the maximum clarity for the maximum number of policyholders, by seeking a binding court determination on the meaning and effect of 19 representative policy wordings written by the insurer parties.
Policyholders who have submitted claims under business interruption policies that provide cover in circumstances where there has been no physical damage to the insured property, will be contacted in accordance with the guidance issued by the FCA on 17 June 2020.
The test case is now at an advanced stage and an 8 day hearing in the High Court is scheduled for late July 2020 before Lord Justice Flaux and Mr Justice Butcher. Aspects of the test case may be appealed, and we will publish further details at that time.
At the final resolution of the test case (i.e. after any appeals), Euna Underwriting will apply the court’s decision to all outstanding claims and complaints other than those which have been referred to the Financial Ombudsman Service.
Better communication equates to better business. Read the latest thoughts from the Euna team.
Euna partner up with RCB LLP to provide a FREE Legal Advisory Service
Euna Underwriting Legal Advisory Service for Recruitment Agencies Insurance
We have moved!
Euna has opened a dedicated motor trade office in Chelmsford.
First time Med Mal insurance
The difference between discretionary and contractual indemnity is a key reason for buying commercial medical malpractice insurance.
Why buy medical malpractice insurance?
Trusted but Discretionary
MDO membership indemnity is often ‘discretionary’. Contractual medical malpractice insurance is not.
Appetite for growth
Increased capacity for Property Owners growth