Small firms get COVID-19 insurance boost
The Supreme Court has backed the Financial Conduct Authority’s (FCA) appeal for small firms to receive payments from coronavirus-related business interruption insurance policies.
Thousands of small firms are now set to receive insurance payouts to cover losses from the first national lockdown.
Eight insurers agreed to take part in the FCA’s test case, resulting in over £1.8 billion expected to be paid out.
Sheldon Mills, executive director of consumers and competition at the FCA, said:
“We will be working with insurers to ensure that they now move quickly to pay claims that the judgment says should be paid, making interim payments wherever possible.”
Huw Evans, director-general of the Association of British Insurers, said insurers have supported the test case and welcomed the clarity.
“Customers who have made claims that are affected by the test case will be contacted by their insurer to discuss what the judgment means for their claim.
“All valid claims will be settled as soon as possible and in many cases the process of settling claims has begun.
"Some payments have already been made where valid business interruption claims have not been impacted by the test case ruling.”
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