Context
FOS has published issue 163 of Ombudsman News, in which FOS shares new content on its approach to complaints about flood damage, and resources on its SME website for small businesses with complaints caused or impacted by the pandemic.
Key points to note
- This month, parts of the UK have been hit by flash floods. To help prevent complaints about insurance claims, FOS has recently published new content about flood damage to properties and what it would expect to see from businesses handling complaints.
Complaints about Business Interruption Insurance (BII) after the test case
- The test case, which the FCA took through the courts, has provided needed clarity over a range of BII policy terms. As a result, many complaints which were with FOS have now been taken back by insurers to resolve. In most instances, this is a good outcome for these complainants as, in most cases, the insurer is now accepting that the policy provides cover without our further involvement. There remain other BII policy terms where the interpretation in the context of the Covid-19 pandemic remains in dispute, but the test case helped in narrowing these contended issues.
- Besides complaints about whether a policy provides cover, FOS is also seeing complaints about a range of other issues, including delays in administration and the amount offered in settlement. More information on what FOS is seeing and examples of how it is resolving disputes are available on its SME website for small businesses.
FOS SME web pages update
- As well as our content on BII, the FOS SME website for small businesses also contains information about FOS’ approach to complaints about the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS).
Wedding insurance claims page updated
- FOS has also recently published more information for businesses on handling and resolving complaints about wedding insurance claims.
Next actions
None – for information and awareness.