Dickson welcomes court decision on business interruption insurance

COVID-19 Economy Stewart Dickson

Alliance Economy Spokesperson, Stewart Dickson MLA, has welcomed a Supreme Court decision in favour of small firms receiving pay-outs from insurance policies, as a result of disruption from the Covid-19 Pandemic.

A test case was brought to the Supreme Court by the Financial Conduct Authority (FCA), after many insurers refused to pay to cover Covid-19 business disruption in early 2020.

The ruling potentially means tens of thousands of businesses will now be able to make claims for disruption from the Covid-19 Pandemic and restrictions, estimated at a value of £1.2bn by the FCA.

Mr Dickson said: “2020 was an incredibly challenging year for businesses across the UK, especially small firms that were unable to trade, or severely restricted. Naturally many thought that their ‘business interruption’ insurance policies would help cover the costs of restrictions. Disappointingly, claims were rejected by many insurers, arguing only specialist policies would cover such conditions. This left businesses without the coverage they expected and struggling with overheads.

“So I warmly welcome this ruling by the Supreme Court, which will help provide much needed clarity and support for businesses.

“However, it is now vital that insurers take quick action to process relevant claims and pay-outs to their policyholders, as such payments will be a lifeline in this extremely challenging time.”