FCA Business Interruption Test Case
FCA Test Case update
On 15 September the court gave its judgment in the FCA Business Interruption (BI) test case. The case was brought in order to resolve some uncertainties relevant to insurers’ BI liability for Covid-19 related insurance claims. We have put together some frequently asked questions to explain what happens next.
Does the judgment mean my claim will be paid?
While Pen Underwriting was not part of this legal action, we have to consider the impact of the judgment across a significant number of policy wordings. We know that these are difficult times for everyone and we are working as fast as possible to establish what it means for those policyholders whose claims are likely to be affected by the case. If you have a claim with us and have received a communication from us that your claim may be affected by the final resolution of the test case, you don’t have to take any further action, we are assessing each claim and will be in touch with you as soon as we possibly can. If you have received a communication that your claim or will not be affected by the final resolution of the test case, this remains the position and the test case judgment will not affect our decision.
Is the judgment final?
While this decision brought some clarity to the issues being considered, it is important to point out that the judgment is not a final resolution of the test case. Any of the parties in the case may appeal against aspects of the judgment. If this happens, we cannot make any indemnity payments or final decisions on coverage until all rights of appeal have been concluded. The next hearing is in October 2020 when the same Judges will consider any party’s application to appeal. We will publish another update once this hearing has taken place.
When will I receive a decision?
The answer to that is different for every policyholder whose claims are likely to be affected by the test case. We are working through the implications for each claim as rapidly as possible. Please be assured, you don’t have to take any further action, we will be in touch with you as soon as we possibly can.
What are the next steps?
Our team is mapping each policy wording and claim against the relevant parts of the judgment to assess which are affected and how. We will be in touch with you as soon as we possibly can