A case arguing insurance payouts for small businesses who were forced to close during lockdown is to face the Supreme Court today.
The case is expected to last four days and will dispute claims from insurers refusing to pay out for small businesses who have claimed on their business interruption insurance whilst they were unable to trade.
Many insurers argued that these policies were never meant to cover such unprecedented restrictions.
After the hearing in the Supreme Court, a final judgement will be made.
It’s reported that the case will have had implications for almost 400,000 small business and involves potential payouts of £1.2bn.
High Court judges earlier found mostly in favour of insurers having to pay out to policyholders regarding a selection of policy types. They looked at 21 policy types as part of a test case and some of these decisions are now being appealed against at the Supreme Court.
These will be discussed in complex legal arguments over four days at the Supreme Court.
The FCA will expect insurers to respond quickly to the final judgement, if the result means they are required to do so.
Specifically for the hospitality industry, a crowdfund campaign was launched by Rob Atkinson, a leading in-house hospitality lawyer from Black and White Hospitality at the start of the lockdown, to push for insurers to pay out.