FCA SEEKS COURT DECLARATION TO CLARIFY BI VIRUS COVER FOR UK SMES – COMMERCIAL RISK.

UK regulator the financial conduct authority (FCA) is going to ask the courts to provide legal certainty over business interruption (BI) insurance cover for Covid-19 pandemic losses, in order to ensure customers are treated fairly. it will obtain a court declaration based on sample cases and BI policy wordings to resolve certainty for SMES that have been closed in the government – ordered lockdown.The FCA has also written to insurers asking them to clarify by 15th MAY whether their BI policy wordings cover non-property damage claims. Many insurers have said their policies do not cover global pandemics and have denied claims. several action groups have formed, including one against insurer HISCOX, to bring potential class actions. The current corona virus (covid-19) emergency and its effect on businesses holding BI policies, means that any uncertainty needs to be resolved as quick as possible the FCA said.The British insurance Brokers association (BIBA) has welcomed the FCA’S move as they have serious concerns for their client.

Leave a Reply

Your email address will not be published. Required fields are marked *