As we explained in our previous post, in a decision that could affect policyholders and insurers around the world dealing with business interruption coverage for COVID-19 losses, the London High Court recently announced its long-awaited ruling in the Financial Conduct Authority's "Test Case ", Financial Conduct Authority (FCA) v Arch et al . Since the judgment provided that coverage was available for COVID-19 business interruptions during most of the current insurance formulations, it was highly expected that the insurance companies in question would challenge the judgment in a fast-track "leap" appeal the Supreme Court of Great Britain, is expected to hear the end of the year. Yesterday, however, six of the insurance companies covered by the ruling decided not to appeal in connection with certain insurances, and one of the insurance companies stated that it would instead start making payments where appropriate.
The insurance companies' decision to waive the appeal means an additional profit for the policyholders. It first shows that there is coverage for business interruption losses caused by the COVID-1