On 15 January 2021, the Supreme Court handed down its hotly-anticipated judgment in the business interruption insurance test case (FCA v Arch and others [2021] UKSC 1). Hailed as a further “victory” for thousands of holders of business interruption (“BI”) insurance policies, the judgment extends, in certain respects, findings in favour of certain policyholders of BI insurance made by the High Court in its judgment of 15 September 2020. In the High Court, it was held that policyholders in respect of 12 of the sample of 21 BI policy wordings (the “Sample Policies”) examined in the case (each of which purported to cover BI losses that do not relate to physical damage to premises) were, in principle and to some extent, covered in respect of BI losses resulting from COVID-19 and the response to it. Elements of the High Court’s judgment were appealed by both the FCA (acting on behalf of policyholders of the Sample Policies) and the defendant insurers.
Please see full publication below for more information.