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Business Interruption Test Case Guidance

Customer Communication under BI Test Case Guidance to holders of relevant policies

You may be aware that the Financial Conduct Authority is currently filing a ‘test case’ with the Courts in relation to disputed claims for non-damage business interruption cover, where the relevant coverage clause in the policy is unclear, or open to multiple interpretations. The FCA have included sixteen example coverage clause wordings from a range of insurers, to enable them to obtain a judgement affecting as many disputed claims as possible, even those with insurers not included in the case itself, but whose wordings are similar.

The decision in the case could, therefore, mean that your insurer has to review their decision on non-damage business interruption losses suffered by you under your commercial insurance.

For clarification, policies which include a list of ‘notifiable or communicable diseases’ that does not include Coronavirus or Covid-19 are NOT included in this test case and those policies do not provide cover for losses arising from the current pandemic closures. The case is expected to be heard in mid-July with a decision by the end of July, although some insurers may appeal the verdict, which will delay a final decision.

The FCA have set up a web page related to the test case at which gives detailed information on the representative sample of wordings being used and the questions for determination. You may wish to sign-up for updates on the case using the link on this page and your insurer’s website may also give information on their position for policyholders.

If you require any further information please do not hesitate to contact us via email at

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