In May 2020, the Financial Conduct Authority (FCA) announced its intention to obtain a court declaration to resolve uncertainty over a number of non-damage Business Interruption claims notified as a result of the COVID-19 pandemic.
The FCA has now completed a review of Business Interruption policy wordings, covering over 40 insurers, 500 policy wordings, and more than 1,200 submissions from policyholders, brokers and action groups. This review included information NFU Mutual sent to the FCA.
The FCA has selected a sample of policy wordings from eight insurers to participate in the test case. Whilst NFU Mutual is not one of those eight insurers, the test case will be considering wordings that are similar to one type of cover offered by NFU Mutual. The court action is now underway with the FCA planning for a trial date later in July.