On 10 June 2020, the Financial Conduct Authority ("FCA") issued proceedings in the High Court of England and Wales to commence a test case in respect of business interruption policies that provide cover in circumstances where there has been no physical damage to the insured property. The aim of the test case is to resolve contractual uncertainty around the validity of many business interruption claims arising from the coronavirus pandemic.
The FCA has involved a number of insurers as parties in the test case. Although Chubb is not a named party in the test case, it supports the FCA’s aim to achieve clarity for all concerned in this unprecedented situation.
Policyholders who have submitted claims under business interruption policies that provide cover in circumstances where there has been no physical damage to the insured property, will be contacted in accordance with the guidance issued by the FCA on 17th June 2020.
Information about the test case can be found on the FCA website and information concerning business interruption insurance can be found on the Financial Ombudsman Service's website. We recommend that all policyholders subscribe for FCA email alerts about the test case so that they are kept fully up to date on the progress of the case. Policyholders can sign up for FCA business interruption insurance email updates, here.