Practice Insurance and Covid-19 Update
01/10/2020
01/10/2020
The Financial Conduct Authority (FCA) brought court proceedings in July 2020 to test how certain business interruption insurance policies respond to claims arising from Covid-19. The Court delivered its judgment on 15th September 2020.
All relevant insurers have been reviewing the lengthy and complex judgment, in order to determine if it changes their assessment of claims.
The insurers with whom our clients have Practice Insurance, have previously confirmed that there is no cover for Covid-19 related business interruption claims under their policies in most circumstances.
In terms of the wider UK insurance market, the FCA judgement has clarified that there are some policy wordings, which may need to respond to claims. However, these insurers and the market more generally, have taken steps to minimise exposure to future losses by clarifying their cover terms around pandemics, in most cases removing it entirely.
As always, please stay safe and well.
With very best wishes,
The Lloyd & Whyte Team