FCA Test Case

FCA Test Case


Dear Client,

The High Court recently passed judgement on a test case brought by the Financial Conduct Authority (FCA) to gain clarity for businesses seeking to claim on their insurance as a result of Covid-19 losses. The Court found in favour of the majority of issues the FCA raised.


The COVID pandemic and lockdown forced many businesses to close. These events, understandably, led to an upsurge in business interruption insurance claims. However, many insurers chose to reject these claims based on the interpretation of their policy wordings. This rejection of claims prompted the FCA to seek legal clarification from the High Court on what is and what is not covered in business interruption policy wordings.

The Verdict

The ruling provides clarification on some key issues raised at the hearing. It’s important to remember, however, that most UK business insurance policies focus on property damage and only have basic business interruption cover.

Next Steps

It is likely that some insurers may appeal the judgement. We are in contact with insurers to understand their interpretations of the judgement and how this impacts upon the various policy wordings in the marketplace. Once we have a clear picture of insurer’s stance we will communicate further with our clients.

If you have any questions relating to the FCA court case, the judgement, or its implications, please contact us at Todd & Cue.


Mark Armstrong

Managing Director

Give us a call for a free quotation or professional advice on: 0191 482 0050