The FCA test case, coined as “probably the most important insurance decision of the last decade”, reached a culmination today as the Supreme Court handed down its judgment. This case has served to be a lengthy and significant battle, directly affecting 370,000 policyholders with wider implications for 700 types of polices across over 60 insurers.
Representing a landmark victory for many small businesses across the country, the Supreme Court found in favour of the FCA and the Hiscox Action Group and ultimately removed many of the hindrances that policyholders might have faced when claiming for cover.
In particular, the wider approach to the wording of prevention of access and hybrid clauses and the positive ruling on causation, that it is sufficient for a policyholder to show that at the time of any relevant Government measure there was at least one case of COVID-19 within the specified radius, will be good news for many policyholders, unlocking millions of pounds worth of claims for business interruption losses as a result of COVID-19.
Nevertheless, the judgment is not without its caveats and policyholders are therefore encouraged to carefully consider the small print of their own insurance policies in light of the judgment. Many are still likely to face months of uncertainty, and possibly their own legal battle, before their claims are actually paid.