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.    

Cooke & Arkwright have been providing rating valuation advice to The Welsh Rugby Union Limited (“WRU”) and Millennium Stadium plc for many years. They were recently successful in achieving substantial reductions in the assessments of the Millennium Stadium, covering both the 2005 and 2010 rating list. These negotiated reductions yielded savings of c.£3.5m which, crucially, allows the WRU to re-invest in rugby throughout Wales. They advise the WRU across the group portfolio including the National Centre of Excellence in the Vale of Glamorgan. The valuation issues across the WRU portfolio are complex requiring a high level of understanding of the funding and finances of professional sport in Wales. Cooke & Arkwright’s experience and understanding of these issues and application to the rating valuation have yielded these substantial negotiated reductions. The WRU and the Millennium Stadium entrust our work to organisations with the required levels in experience and expertise in dealing with these complex issues. I am glad to say we have this expertise in Wales. I would have no hesitation in recommending ratepayers making use of this Welsh based expertise.

Steve Phillips, Group Finance Director, Welsh Rugby Union Group