FCA Test Case Information


On 1 May 2020, the Financial Conduct Authority (FCA) announced its intention to seek clarity and certainty around non-damage BI cover in relation to the coronavirus pandemic.

A test-case was brought in court against what the FCA considered to be a range of non-damage BI policy wordings that were representative of those used by the insurance industry.  The aim of the test-case was to determine the interpretation of certain clauses within policies that include non-damage BI.  They hoped that this would assist in providing greater clarity to insurers and policyholders alike in the handling of COVID-19 claims.

If you submitted a COVID-19-related non-damage BI claim or complaint, you will have heard from us prior to 15 July 2020 to confirm whether or not your policy would be affected by the outcome of the test case.

On 15 September, the High Court handed down its judgment in the test case.  The judgment can be found here.

We are reviewing the judgment to ascertain the effect, if any, it has on the wordings where we are lead insurer.  We have been communicating, and will continue to communicate, as appropriate with our policyholders in this regard.  Whilst the initial judgment has now been handed down, elements of this judgment are in the process of being appealed.  We will continue to keep our policyholders informed as the test case progresses through the appeal stage.  

Please refer to the judgment or the ‘useful websites’ below for further detail.

We will regularly update this page with information in relation to the test case.

Useful websites

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

Register for the latest BI updates from the FCA: 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


Last updated: 27 October 2020