Many businesses have been looking to their insurance policies in an attempt to recover some of the losses incurred as a result of the coronavirus disease 2019 (COVID-19) pandemic. Business interruption policies are, as a consequence, enjoying a place in the spotlight. Given that the World Health Organisation has only been aware of this new threat for 10 months, it is unsurprising that businesses have not previously given serious consideration to the effect of pandemics, and many insurers are keen to argue that losses are not covered by business interruption provisions. Fortunately, the Financial Conduct Authority (FCA) has brought a test case (the FCA Case) to offer some much-needed clarity. Its importance cannot be overstated. The decision could affect up to 700 types of policies across 60 different insurers and 370,000 policyholders.
In this article our Real Estate Litigation team explores the Case in further detail, particularly from a Landlord and Tenant perspective.