Business interruption claims cases after the FCA test case

This review summarises and analyses several cases of business interruption insurance claims relating to Covid-19, starting with the UK Supreme Court decision in the Financial Conduct Authority test case handed down in January 2021. These cases arise from the common law jurisdictions of England and Wales, Ireland and Australia.

In March 2020 the UK government began to take a series of measures to combat the transmission of Covid-19. A test case was brought by the Financial Conduct Authority to determine a variety of preliminary issues relating to the coverage of non-damage extensions in business interruption policies to the various restrictions imposed upon businesses following the outbreak of the pandemic. The Supreme Court considered the impact of these actions and measures on 28 clauses in 21 lead policies falling into three broad categories: “disease clauses”; “access clauses” covering prevention of access and similar perils; and “hybrid clauses” including both elements.