UPDATE 15 Jan 2021: Supreme Court Judgement in the FCA’s Business Interruption Insurance Test case

Updated: Apr 20, 2021

The judgment announced today, by the Supreme Court on the appeal of the verdict by the High Court in July 2020, of the FCA’s business interruption test case substantially allowed the FCA’s appeals and dismissed the insurers appeals. This is good news for many businesses that had purchased Business Interruption insurance with unspecified diseases and denial of access clauses.

The judgment is good news for thousands of small businesses which have been waiting to find out if their claims will be paid.

The Association of British Insurers has said that: “Customers who have made claims that are affected by the test case will be contacted by their insurer to discuss what the judgment means for their claim. All valid claims will be settled as soon as possible and in many cases the process of settling claims has begun.”

Although this judgement is legally binding on the Insurers participating in the case, it sets the precedent for those insurers who did not participate. There will be variations between wordings and many claims will be still have to be looked at on a case by case basis.

We would encourage businesses to get back in touch with their Insurers and brokers in the first instance, rather than engaging the no win, no fee services being offered at present.

You can read the summary by the FCA here:

Supreme Court judgment in FCA’s business interruption insurance test case | FCA

And the detailed judgement of the Supreme Court here:

The Financial Conduct Authority and others (Appellant/Respondents) v Arch Insurance (UK) Ltd and others (Respondents/Appellant) (

This judgement is likely to have long ranging consequences for Business Interruption Insurance in terms of cover offered and cost.

If you need assistance or have any questions we are happy to help. or call 0203 432 0270

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