FCA Takes the Lead: Fenchurch Law Covid-19 Business Interruption Briefing Note 5 April 2020 by Aaron Le Marquer

Since the designation of COVID-19 as a notifiable disease in England on 5 March, and the subsequent ratcheting of measures to slow the spread of the disease, business owners large and small have incurred catastrophic losses which, for the time being, continue to mount up on a daily basis.

Those with business interruption insurance have turned to their insurers for assistance, but have by and large been met with outright rejection of their claims.

Matters have escalated rapidly in the course of the last two weeks as thousands of declined claims pile up,  with action groups being formed, ‘class actions’ announced, and regulators adopting an increasingly interventionist stance, culminating with the FCA’s announcement on 1 May 2020 that it intends to take legal action to obtain a court declaration on the disputed wordings.

This update takes stock of developments so far, considers the positions of the market and policyholders in relation to the disputed issues emerging, and sets out the options for policyholders wishing to pursue their declined business interruption claims.

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