Potentially good news for businesses on claims for business interruption

17 September 2020

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There has been some potentially good news for businesses whose claims for business interruption due to Covid have been rejected by their insurers. 

The High Court has handed down judgement in the COVID-19 Business Interruption insurance test case brought by the FCA on behalf of policyholders. 

The case considered 21 sample wordings from eight insurers and although different conclusions were reached by the Court relating to each wording, the Court did find in favour of the FCA on many of the key issues.

All parties will need to digest the judgment and the case may well go to appeal, which will take some time. In the meantime insurers have been instructed to contact brokers and policyholders with affected claims within the next seven days. 

Although there may not be a quick resolution to this, the judgement will bring welcome news to many policyholders depending on its relevance to the wording of their policies.    

Mansford has expanded its investment portfolio over the last few years. Over this time Andrew West has provided us with a full rating valuation service which has involved giving a view on liabilities prior to acquisitions, as well as conducting negotiations with Valuation Officers on our UK estate. The portfolio includes a wide range of properties from shops, offices and pubs to major leisure schemes. He has been particularly successful in mitigating our liabilities to empty property rate, which has been an issue on acquisition prior to implementing our development and letting strategy. I have no hesitation in recommending Andrew's expertise in rating valuation for all property types. The profile of property within his portfolio and the successes achieved are testament to his position as an extremely accomplished rating practitioner.

Leopold Hall, Partner, Mansford LLP