UK Supreme Court hands businesses victory in COVID-19 insurance ruling
LONDON (Reuters) - The UK Supreme Court ruled on Friday that thousands of businesses should be insured for some losses amassed after a national lockdown to curb the coronavirus pandemic in a test case that pitched the markets regulator against major insurers.
Six of the world’s largest commercial insurers -- Hiscox, RSA, QBE, Argenta, Arch and MS Amlin -- said many business interruption policies did not cover widespread disruption after Britain’s first national lockdown last March.
But senior judges said payouts should be triggered after scrutinising 14 non-damage insurance policy clauses -- which cover disease, denial of access to business premises and hybrid clauses -- in a resounding victory for policyholders and the regulator.
The Financial Conduct Authority (FCA) took insurers to court last June in a case that has been expected to have ramifications for 370,000 policyholders, 60 insurers and billions of pounds in claims because many policies have similar wordings.
Read more: https://www.reuters.com/article/us-britain-court-insurers/uk-supreme-court-hands-businesses-victory-in-covid-19-insurance-ruling-idUSKBN29K11I