COVID-19 Business Interruption Policy Update

1 July, 2020
News

Colin Johnson, CEO of Accredited Insurance (Europe) Limited [‘AIEL’] commented on the Financial Conduct Authority’s court case in respect of COVID-19 business interruption insurance:

“We take our responsibility to support our policyholders very seriously and understand the unprecedented challenges they are facing as a result of COVID-19.

“AIEL has a small number of Business Interruption policyholders who have been affected by COVID-19 and we remain committed to respond to all enquiries promptly.

“With a commitment to acting in the best interests of policyholders, and having performed a due process review of our policies, we concluded that our Business Interruption policies do not cover pandemics such as COVID-19. Accordingly, we have unfortunately had to deny a small number of claims.

“We are aware of the FCA’s court test case and, whilst we are not one of the insurers involved in this action, we understand we underwrite with similar wordings to some of those insurers who are included in the test case.

“We support the FCA’s move to collaborate with the industry and progress with the test case. In these unique circumstances this should clear up any uncertainty so that  any potential disputes are quickly resolved through the guidance the test case should provide.”

 

Useful web pages:

Information for policyholders and regular updates on the test case from the FCA :
http://www.fca.org.uk/firms/business-interruption-insurance

Register for the latest Business Interruption updates from the FCA:
http://www.fca.org.uk/sign-business-interruption-bi-insurance-email-updates

Information for small businesses from the Financial Ombudsman Service:
https://sme.financial-ombudsman.org.uk/