Coronavirus Updates

The FCA Legal Test Case – Update

The court has stated that judgement will be handed down at 10:30am on Tuesday 15 September 2020.

Background to this judgement

In the UK the Covid 19 emergency has led to widespread closure and disruption to businesses across the economy, causing hardship and worry to all concerned.

As more policyholders looked to make claims under the Business Interruption extension to their policies it became clear that there was widespread concern over a lack of clarity in the policy wordings and doubts over whether the extensions and wordings were being interpreted correctly by insurers. As a direct result of this the FCA took a proactive approach and sought a legal judgement on how some insurance products /polices should respond to the pandemic and subsequent Government regulations. While eight insurers agreed to be part of the test case it was widely understood that any outcome could also provide significant guidance to other insurers and might lead to a review of claims under similar circumstances and with similar wordings.

In the last two weeks of July, the trial of the test case took place over eight days in the High Court. Submissions were made by the FCA, the intervenors Hospitality Insurance Group Action, Hiscox Action Group, and eight Defendants.

What is most likely to happen next

From your insurer

Your insurer will most likely issue a 'holding' letter or email to any affected customers confirming that they need time to digest the full judgement and decide on the next steps. This is due to the complexity of the issues at hand.

They could Issue correspondence confirming that the outcome of the judgement does, or does not, impact a decision already reached by them to your claim, whether this is all or part of your claim. This might mean that your claim remains denied, or that your insurer will be re-assessing your claim.

They may appeal the decision; in which case they should advise you that your claim is on hold pending the result of an appeal. This may take some time.

What we will do

Due to the volume of enquiries all insurers will be experiencing at the moment a full response will not be immediately provided, but as soon as it is received from your insurers we will be back in contact with you. We have a dedicated team ready to deal with the full response of the test case, please be rest assured we know how important an update is to you and your business and we are treating this as a priority.

This is a very difficult and worrying time for you, but please be assured we are doing our utmost to pursue a timely response from each and every insurer and will be chasing a response on your behalf. It would be helpful to us in dealing with your claim as quickly as possible if you can avoid calling into us for an update, as this will allow our dedicated team to work with the insurers on your behalf, as well as providing them with maximum time to call our clients with updates in turn.

In the meantime, we will:

You can keep up to date with developments of the FCA’s Test Case review via their website:

Your insurer will also have regular updates on their websites.

We thank you for your co-operation and will be in touch soon.

Our Offices Are Closed

Following the Government announcement on 23rd March 2020, our offices are now closed.

We have deployed our Business Continuity Plan and all our staff are working remotely, many of whom are now working additional hours to support you through this challenging time.

Our business continues to operate as normal, in addition all calls are being diverted to our staff at home, and staff are able to receive Skype calls for those wishing to have some face to face interaction.

Insurers continue to also operate remotely and despite high call volumes throughout the industry our usual high level of service is being delivered.

We wish to thank our clients for their continued support during this unprecedented time.