Settlement reached following the Covid-19 Business Interruption Insurance test case
An arbitration between Hiscox and a group of policyholders has been at a standstill since December 2020. However, in a joint statement on 28th June 2021, Hiscox and the policy group stated, “Proceedings have now been resolved to the mutual satisfaction of all parties”. The parties have agreed to keep confidential the size of the settlement.
This settlement follows the Supreme Court’s landmark judgement handed down in the Covid-19 Business Interruption Insurance test case on 15th January 2021.
The Supreme Court unanimously dismissed appeals raised by insurers from the High Court, relating to the interpretation of common business interruption policies. The policies concerned clauses offering protection against disease outbreaks and/or denial of access to premises by a public authority.
The practical outcome was that in most circumstances the insuring clauses which were in issue will provide cover for the business interruption caused by the Covid-19 pandemic, bringing positive news for policy holders across the country.
The private arbitration was launched alongside the test case in an aim to determine matters between the parties not resolved by the Supreme Court, such as the amount of the claim each policyholder would be entitled too.
This settlement brings even more welcome news for policy holders and according to the City watchdog, since the Supreme Court’s judgement just over 54% of policyholders, who have had their claim accepted by their insurer, had been handed a full or interim payment.
Our commercial litigation team is currently acting for clients, whose businesses have been significantly interrupted by the Covid-19 pandemic but have been denied support from insurers under their business interruption policies. If you run a business and your insurer has not accepted your claim, please do not hesitate to contact us.
*This article is provided for general information purposes only and does not constitute legal or any other professional advice.