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Call our teamAnnouncement from the Financial Conduct Authority
The financial regulator covering insurance, the Financial Conduct Authority, has announced that it will be seeking a court decision to resolve the contractual uncertainty of claims for Business Interruption cover. It is intending to gather the most common areas for claims uncertainty in insurer wordings and have a court declaration resolve these issues, hopefully allowing customers to make a valid claim where uncertainty was used to decline a claim. Below is an extract from the statment given by the FCA on the 01/05/2020 and we of course will be keen too know the outcome of such a legal proceeding to be able to accurately inform our clients.
‘Today, the FCA is announcing that it intends to obtain a court declaration to resolve contractual uncertainty in business interruption (BI) insurance cover. This is due to continuing and widespread concerns about the lack of clarity and certainty for some customers making business interruption claims, and the basis on which some firms are making decisions in relation to claims.
We are intending to take this action in the public interest to advance our consumer protection and market integrity objectives. We believe the circumstances of the current coronavirus (Covid-19) emergency, and its effect on businesses holding BI policies means that any uncertainty needs to be resolved as quickly as possible.
It should be noted that this intended action by the FCA, which we hope to place before the courts in an agreed and urgent manner, is not intended to encompass all possible disputes, but resolve some key contractual uncertainties. This will assist both insurers and the insured. It will not determine how much is payable under individual policies, but will provide the basis for doing so.’
FCA Statement – insuring SME’s: business interruption 01/05/2020
