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23 November 2020 0 Comments
Posted in Dispute Resolution, Opinion

Update: the business interruption insurance (BII) appeal – will businesses get all they want for Christmas?

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In September we published our summary of the lengthy BII test case judgment to assist businesses in understanding what this meant for them.

Our summary can be found here. As anticipated, a leapfrog appeal to the Supreme Court was permitted for a number of parties. The appeal hearing lasted four days and concluded last week.

Many businesses will have found themselves required to close again during the second Government lockdown, announced on 31 October 2020. However, most are yet to have a final answer as to whether their associated losses will be covered by their business interruption policy.

Lord Reed, one of the judges hearing the appeal, acknowledged the importance of an early judgment in the appeal, particularly for the businesses affected, however was unable to confirm whether this would be forthcoming before Christmas or sometime in January 2021.

We understand that the Court intends to keep the parties informed as to timescales and, as soon as there is an estimated judgment date or any further development, we will aim to provide a further update.

That said, businesses should not wait for the appeal decision to make or progress claims with their insurers. Insurers have been encouraged to engage but, in practice, the level of engagement and approach taken will depend on the individual insurer.

Please contact us if you have any questions or require support at this stage, including whether you wish to bring a complaint to Financial Ombudsman Service or explore a claim against an intermediary regarding advice you received about your policy at the outset.

We hope that the outcome of the appeal will be sooner rather than later and will bring some much-needed Christmas cheer for businesses.

If you have any enquiries, please contact our Dispute Resolution team on:

0800 923 2076     Email uscdr.enquiries@roydswithyking.com

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