FCA Supreme Court ruling on Business Interruption Test Case

15th January, 2021

The FCA brought this test case on behalf of policyholders who held policies that included extensions where the wording was not clear and, in their view, offered the policyholder cover under the extension.

The outcome was found in favour of the FCA which means that the insurers involved are legally bound to abide by the judgement of the test case.

The court case does only affect a small number of policies as most Policies are clear and there is no cover for the current pandemic and subsequent closure of businesses by the Government.

Details of the case can be found on the link below

Link to FCA website: 


How do I find out if my policy does offer cover?

If you have not discussed this with us already or need any further clarification, please call, and discuss this with us on 0115 9737303. Full details of cover can also be found in your policy wording.

Insurance conditions to be aware following the lockdown where you close your business e.g. office, shop or stop working on site?

Most Insurers are taking a flexible view regarding the closure of premises as a result of lockdowns, but it is important to let us know what is happening. You must take reasonable measures to ensure your premises/site are secure to prevent loss or damage.

Most policies include strict Unoccupancy Conditions that must be complied with if your property becomes unoccupied for more than 30 days. Failure to comply with these Conditions may leave you uninsured. In addition, cover may automatically reduce to Fire, Lightning, Explosion and Aircraft only after this period.

If you think the property will be unoccupied for more than 30 days or if you are unable to re-open your premises following the lifting of Government restrictions, please call us immediately.