Supreme Court rules on Business Interruption Insurance Policies

The Supreme Court has found in favour of small firms receiving payments from business interruption insurance policies.

The legal process was fast-tracked to the highest court in England and Wales which now says it has “substantially allowed” the appeal brought by the FCA and an action group to clarify the position.

The ruling could cost the insurance sector hundreds of millions of pounds – perhaps as much as £1.2 billion.

In the lockdown of last spring, many small businesses made claims through business interruption insurance policies for loss of earnings when they had to close. But many insurers refused to pay, arguing only the most specialist policies had cover for such unprecedented restrictions.

A selection of policy wordings were tested in court, setting the parameters for what would be considered a valid claim.

The ruling provides guidance for a wider pool of 700 policies, potentially affecting 370,000 small businesses.

EYE has previously reported on the issue as it affects many estate agency businesses.


Email the story to a friend


  1. PossessionFriendUK39

    Typical of  Insurance  companies  trying to  worm their way out of  paying.

    Keen enough to take your premium, but not paying claims.

  2. juniorneg

    Great news for so many.  Watch those premiums increase next year.


  3. KByfield04

    This is a relief and will be great news for a lot of small businesses.

  4. smile please

    Great news and common sense prevails.


You must be logged in to report this comment!

Comments are closed.

More top news stories

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.