FCA Seeks Legal Clarity on Business Interruption Insurance

The FCA has announced it intends to seek legal clarity on business interruption insurance to resolve doubt for businesses who are facing uncertainty on their claims.

​The FCA is also producing new guidance for insurance firms, expecting them to consider whether and how coronavirus may have materially affected the value of their insurance products. The effects of coronavirus may mean that:

• Firms are no longer able to provide expected contractual benefits, either in the expected form, to the expected timeframe, or at all. For example, where fulfilling claims involves service providers whose movements are restricted because of lockdown (e.g. boiler servicing), or some medical covers where customers cannot access certain benefits.
• Underlying insured events can no longer happen for any holders of the policy eg, due to Government lockdown or other circumstances connected with coronavirus, resulting in a fundamental change in risk for the firm.  For example, public liability insurances for businesses that are unable to open, such as hairdressers, bars and restaurants.

 
https://www.fca.org.uk/news/press-releases/fca-seeks-legal-clarity-business-interruption-insurance
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