Businesses remain in the dark over whether their insurance will pay-out for Covid-19 disruption despite the City regulator claiming victory on their behalf in a landmark test case.
The Financial Conduct Authority said the High Court had “substantially found in favour” of arguments it presented for policyholders, raising hopes for hundreds of thousands of businesses that believe they are now due payouts on their business interruption policies.
However, the insurance industry claimed the judgment from Lord Justice Flaux and Mr Justice Butcher “divides evenly” between insurers and policyholders.
The share price of affected insurers including Hiscox and RSA rose in response to the judgment being handed down, with the markets judging that the financial impact of the ruling could be less than feared.
The case
