We’re pleased to share news of a significant victory for small business owners facing uncertainty as a result of the latest lockdown.

As reported in an article from Buckles Solicitors (https://www.buckles-law.co.uk/blog/covid-19/general-advice-for-businesses/supreme-court-success-for-fca-and-small-businesses-in-covid-19-business-interruption-case/), a test case (which was brought by the Financial Conduct Authority to obtain clarification on certain ‘disease’ clauses which insurers were using to withhold pay-outs for business interruption resulting from the pandemic) had the decision of the Supreme Court handed down on the 15th January. This decision allows the FCA appeal and dismisses the appeals of the insurers.

Lord Briggs in his concurring judgement stated:

‘On the insurers’ case, the cover apparently provided for business interruption caused by the effects of a national pandemic type of notifiable disease was in reality illusory, just when it might have been supposed to have been most needed by policyholders.

“That outcome seemed to me to be clearly contrary to the spirit and intent of the relevant provisions of the policies in issue.’