The Supreme Court backs small businesses
Insurers are set to settle business interruption claims worth £1.2bn after judges back SMEs.
The Supreme Court has ruled in favour of small businesses in the landmark test case brought by the Financial Conduct Authority (FCA) against leading insurers over business interruption payouts.
The FCA case against eight insurance companies was raised and fast-tracked through the courts after thousands of businesses argued they faced ruin when their insurers failed to pay out for business interruption policy claims on losses caused by the first national COVID-19 lockdown.
It is estimated that 370,000 businesses will now receive settlement payouts of disputed coronavirus business interruption claims worth at least £1.2bn.
The FCA suggests that affected policyholders can expect to hear from their insurer soon and should approach their advisers or insurers with any questions.