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ABI responds to the Supreme Court verdict on the business interruption insurance test case

Link(s): https://www.abi.org.uk/news/news-articles/2021/01/supreme-court-verdict-on-business-interruption-insurance-test-case/

Context

Huw Evans, ABI General Director, has provided a response following the judgement from the Supreme Court on 15th January 2021.

Key points to note

  • The insurance industry expects to pay out over £1.8bn in Covid-19 related claims across a range of products, including business interruption policies. 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. Some payments have already been made where valid business interruption claims have not been impacted by the test case ruling.
  • The ABI recognises this has been a particularly difficult time for many small businesses and has said that it naturally regrets that Covid-19 restrictions have led to disputes with some customers. The ABI has said it will continue to work together as an industry to ensure customers have the clarity they need when it comes to what they can expect from their business insurance policies.