Insurers must pay out on disputed coronavirus business interruption claims, the Supreme Court has ruled. Small firms could now share around £1.2bn in payouts. The outcome is the result of a test case brought by the Financial Conduct Authority (FCA), with the ruling potentially affecting up to 370,000 firms holding 700 types of policies issued by 60 insurers. Judges rejected appeals from six insurance companies and largely supported the arguments made by the FCA and a group representing policyholders. The FCA says it will be working with insurers to ensure they “move quickly” to pay claims to businesses. The Supreme Court ruling follows an appeal from insurers who questioned a decision by the High Court, which had found in favour of policyholders on most key issues in September 2020. Federation of Small Businesses chairman Mike Cherry welcomed the ruling, noting that many firms had been left in “f inancial limbo” by insurers refusing to pay out on claims for losses caused by the first national coronavirus lockdown.
Read more: Daily Mail
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