At the end of last week, the FCA announced that it had commenced a consultation exercise on a piece of draft guidance it has prepared to assist policyholders, insurers and insurance intermediaries to prove the presence or otherwise of COVID-19 in a particular area, which is a requirement of some Business Interruption (BI) policies.
This has been released as the outcome of the appeal in the BI Insurance test case is awaited. The High Court found in October that out of the 21 policy types, 12 had the potential to provide cover in response to COVID-19. A judgment from the Supreme Court is expected by January 2021.
