Ken Dixon, Director of Dixon Insurance Brokers says “this as a great result prior to our client’s October 2 test case in the Appeals court of NSW in which the courts will be ruling on the Quarantine vs Biosecurity Act clauses in our Australian policy wordings”
The day of judgement for the FCA business interruption test case has arrived. Ever since the FCA first detailed its intention to seek legal clarity on business interruption insurance claims impacted by the COVID-19 pandemic, the eyes of the insurance sector and businesses throughout the country have been firmly fixed on what this judgement will bring.
The High Court has today ruled that the majority of businesses who held business interruption insurance and were forced to close due to the COVID-19 pandemic are entitled to be compensated by the insurers and that, subject to the limits of the policy, this compensation should return them to the position they would have been in had the pandemic never happened.
Commenting on the ruling, Christopher Woolard, interim chief executive of the FCA, commented that the case was brought to the High Court in order to resolve the lack of clarity and certainty that existed for many policyholders making business interruption claims, and the wider market.
“We are pleased that the court has substantially found in favour of the arguments we presented on the majority of the key issues,” he said. “Today’s judgement is a significant step in resolving the uncertainty being faced by policyholders. We are grateful to the court for delivering the judgement quickly and the speed with which it was reached reflects well on all parties.”
Article published 16.09.2020 Insurance Business Magazine