FCA Test Case Judgment Handed Down
Colin Edelman QC and Richard Harrison appeared on behalf of the FCA, leading the senior and junior counsel teams respectively.
The test case focused on the application of Denial of Access and Notifiable Disease extensions to pandemic related losses.
The judgment establishes a substantial degree of cover under policies with notifiable disease clauses and, in certain cases, for policies with clauses triggered by restrictions on the use of premises. The judgment also overcomes the causation hurdles presented by the decision in Orient-Express Hotels.
The FCA have published guidance, setting out their expectation that following final resolution of the test case, insurers should apply the judgment when assessing and re-assessing all outstanding and rejected Covid-19 business interruption claims.
You can find a copy of the judgment here.
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