More than £750m has been issued to over 20,000 UK businesses in insurance payments for pandemic-related business interruption following the Supreme Court’s judgment in January.
According to figures from the Financial Conduct Authority, nearly two-thirds of that figure represents claims where final settlements have been agreed and paid, while the remainder have received at least an interim payment.
Covea Managing Agency has settled the largest number of claims at 2,294, followed by Axis Managing Agency Limited and Allianz.
More than 15,000 UK businesses who had business insurance claims accepted still have claims pending.
The Financial Conduct Authority brought the successful test case to court on behalf of hundreds of thousands of companies that had their business interruption claims turned down during the first lockdown after insurers stated that they were never intended to cover pandemics. This was despite some clearly stating cover for infectious or notifiable diseases (‘disease clauses’) and non-damage denial of access and public authority closures or restrictions.
The policy wordings issued by eight insurers were scrutinised, with the Supreme Court ruling in favour of the policy holders.