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.    

I have worked with Jeremy Symons over the past three years successfully leasing and buying property in support of my business. I continue to be very pleased with his knowledge of the market and expertise. Our relationship over this time has resulted in acquiring 20,000 sq ft at Capital Business Park in Cardiff, leasing 11,000 sq ft at Southpoint, and subsequently leasing an initial 42,000 sq ft at Parc Bedwas, followed by a succession of expansions of a further 11,000 and then 47,000 sq ft, enabling us to centralise all of our operations at Parc Bedwas in a single 100,000 sq ft facility. The acquisitions were completed at the perfect time for tenant purposes and the rent fixed throughout the term at very economical rates. A job well done.

Bob James, Aerfin