Supreme Court Supports Businesses’ Lockdown Claims
Supreme Court supports businesses’ lockdown claims
Tens of thousands of small businesses are set to receive insurance pay-outs covering losses from the first national lockdown, following a court ruling.
The Supreme Court found in favour of small firms receiving payments from business interruption insurance policies.
For some businesses it could provide a lifeline, allowing them to trade beyond the coronavirus crisis.
The ruling could cost the insurance sector hundreds of millions of pounds.
The City watchdog, the Financial Conduct Authority (FCA), brought the test case, with eight insurers agreeing to take part in proceedings.
One of the insurers set to make significant pay-outs is Hiscox, which was challenged by 30,000 policyholders as part of the case.
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