As the result of financial losses arising from business disruption caused by the various ‘lockdowns’ imposed by the Government as part of its endeavours to stem the spread of the COVID-19 virus, many businesses which had previously bought Business Interruption Insurance Policies have sought to recover their losses by submitting claims to the various insurance companies which sold such policies.

Tim Thompson of Kangs Solicitors briefly outlines the court proceedings leading to the recent  Supreme Court decision which confirmed that the claims pursued by the policyholders were legitimate claims.

The team at Kangs Solicitors regularly advises individuals, directors and companies in respect of legal disputes of every nature including those arising from interpretation of insurance policies.

We are here to assist and our team can be contacted for confidential and discrete advice as follows:

The Background | Kangs FCA Solicitors

As the result of the volume of claims made under Business Interruption Insurance Policies being refused by the insurance companies, the Financial Conduct Authority (‘FCA’) sought clarification from the High Court by requesting it to consider the policy wording in twenty-one specific insurance policies.

On 15 September 2020, the High Court handed down its complex judgement in this case,  FCA v Arch Insurance (UK) Ltd and others [2020] EWHC 2448 (Comm)), which found in favour of the policyholders declaring that their policies were capable of covering financial losses arising from business disruption caused by the impact of the COVID-19 pandemic.

In view of the enormous financial implications of its decision, the High Court allowed immediate appeals to the Supreme Court, thereby by-passing the Court of Appeal and time loss which would have arisen from that court’s involvement.

The Supreme Court Judgement | Kangs Insurance Disputes Solicitors

The Supreme Court supported the decision of the High Court and found in favour of the Policyholders thereby confirming that, in essence, the liability of an insurance company is triggered when properly calculated trading losses arise from the steps taken to curtail the effects of such a pandemic.

The Judgement has removed the need for each claimant to establish this principle with their insurer.               

The Judgement is legally binding on those insurers which were party to the case being:

  • Arch Insurance (UK) Ltd
  • Argenta Syndicate Management Ltd
  • Ecclesiastical Insurance Office Plc
  • MS Amlin Underwriting Ltd
  • Hiscox Insurance Company Ltd
  • QBE UK Ltd
  • Royal & Sun Alliance Insurance Plc
  • Zurich Insurance Plc

Subsequent to the Judgement, the FCA has released guidance and statements for policyholders to assist them when making claims which can be found on the FCA website at https://www.fca.org.uk/firms/business-interruption-insurance.

How Can We Kangs Help? | Kangs Civil and Criminal Litigation Solicitors

Given the complexity and variance in the terms of differing insurance policies it is inevitable that individual policies may give rise to ongoing disputes. Any individual trader or company experiencing this situation should seek legal advice.

Kangs Solicitors is well versed in advising clients in all manners of legal disputes including those within insurance and can assist you with all aspects including:

  • conducting a formal review of insurance policies to determine the extent losses are recoverable,  
  • advising on what information and/or documentation is required in order to assess financial loss,
  • collating  all necessary evidence in support of any claim,  
  • advising on an appeal in respect any rejected claim, reconsider a claim that has already been submitted and rejected.

Contact:

If you require help and assistance in respect of any of the issues mentioned above please feel free to contact our team through any of the following who will be happy to provide you with initial advice:

Tim Thompson
tthompson@kangssolicitors.co.uk
020 7936 6396 | 0121 449 9888

Stuart Southall
ssouthall@kangssolicitors.co.uk
0121 449 9888 | 020 7936 6396