Dear Customer,

Many will be aware that the outcome of the FCA appeal case against various insurers was passed down Friday 15th January. This outcome was found ‘largely’ in favour of the Policyholder.

Whilst this case was limited to a small number of insurers – we, as you would expect, are working through this development to understand the implication for all customers and will be liaising with insurers to challenge as to whether their original stance and interpretation of policy wordings has changed as a result of today’s news.

Clearly we will keep our customers updated as these discussions progress.


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 the 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

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