Following today’s judgment in the Supreme Court, Steve White, BIBA CEO said:
“The judgement today in the Supreme Court which substantially ruled in favour of the FCA is good news for many businesses that bough an unspecified disease extension.
The application of Covid-19 as a peril in relation to business interruption insurance is highly complex matter which is why, from the outset, we welcomed the FCA intervention in bringing this test case and the ultimate clarity the judgement now brings.
What is needed now is for insurers to act swiftly to settle claims fairly and to clearly communicate the next steps in the process with brokers to allow them to help and advise their customers.
“Though the judgement is welcome, it does not detract from the need for the insurance sector to provide greater clarity about the operation of cover. We will be taking the time to study the judgement in detail and will provide guidance to our members on what it means for them and their customers.
“Looking forwards the UK needs a long-term answer that provides a solution to help businesses and people cope financially with any future pandemic and BIBA is committed to working across industry and Government to help deliver this.”
Read the Supreme Court judgment here.
Read the FCA summary here.
BIBA members can read more here.