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The Independent Automotive Aftermarket Federation

Is my business insured for the financial impacts of COVID-19?

Date: Thursday 29 October 2020

You may have seen details of the Financial Conduct Authority (FCA) test case in the media recently and wondered how it may affect you and your business. The FCA has been instrumental in acting for policyholders by bringing this case to the High Court, whose decision was handed down on 15th September. The case considered a number of sample policy wordings, each of which contained specific reference to cover for business interruption arising from disease or prevention of access to business premises.

While much of the High Court’s judgment is favourable for policyholders, the ruling is complex and detailed, and will affect every business differently dependent on the detail of their insurance policies. A number of insurers have indicated that they will be appealing the Judgment, which could mean that the latest ruling is simply a milestone along the journey, rather than the ultimate destination.

Joe Howard of Boswell Aftermarket states:

“The 168 page judgement has brought some hope for policyholders. However, the majority of policies do not provide the specific extensions so the position for many UK businesses remains unchanged as they were not insured for Business interruption losses arising from COVID-19. We would recommend any policyholders wishing to discuss their individual set of circumstances should contact their insurance broker.”