The High Court has today handed down its judgment in the Financial Conduct Authority’s (“FCA’s”) test case to determine the issues of principle in relation to policy coverage under various specimen wordings underwritten by various underwriters in respect of claims by policyholders to be indemnified for business interruption losses arising in the context of the COVID-19 pandemic and the advice of and restrictions imposed by the UK government in consequence.
21 “lead” policies were considered from 8 insurers. In addition the FCA estimated that some 700 types of policies across 60 different insurers and 370,000 policyholders could potentially be affected by the test case. The Court divided the lead policies into essentially three categories:
The decision of Lord Justice Flaux and Mr Justice Butcher in FCA v. Arch Insurance (UK) Limited & 7 others  EWHC 2448 (Comm) is available to read here.