Supreme Court hands down its judgment in business interruption insurance test case

On Friday 15th January 2021 the Supreme Court handed down judgment in the Covid-19 Business Interruption Insurance test case and found largely in favour of policy holders receiving payments from business interruption insurance policies.

The complex ruling, which mainly dealt with disease clauses and prevention of access clauses, will reportedly impact 700 types of policies, 60 insurers and 370,000 small businesses.  It is great news for policy holders and means that many insurance companies, who declined to pay out following the enforced closure of hospitality businesses last March, will now be lawfully bound to compensate policy holders.

It should be noted that although the judgment is largely in favour of insurance policy holders it does not mean that all insurance policies will respond. Only sample wordings were considered in the test case, and underwriters may seek to distinguish their policy terms. Each policy, therefore, needs to be considered against the detailed judgment to work out what it means for that policy. 

At McCartan Turkington Breen Solicitors we have a specialist team on hand to review your policy, together with the Judgment, and provide you with clear, straightforward advice.

If you are unsure if you have a valid claim under your insurance policy, please call us on 02890329801.