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Supreme Court Judgement in Covid-19 Insurance claims

Supreme Court Judgement in Covid-19 Insurance claims

Andrew J P Wilson

Published by
Andrew J P Wilson

18th January 2021

The Supreme Court has issued a judgement on Friday 15 January which determines that business interruption claims arising out of COVID-19 will, subject to policy wording, be valid claims under relevant contracts of insurance.

The decision of the Supreme Court follows from a test case brought by the Financial Conduct Authority to determine the scope of policy cover under a range of specimen contracts of insurance. In large part the Supreme Court has determined that the policies in question do cover business interruption as a consequence of COVID-19. It marks a significant development for SMEs who had insurance cover in place against such an eventuality.

If you think you may be covered by such insurance now is the time to review your insurance policy and to make contact with your insurers about a claim. Policy wording will vary from one contract of insurance to another and it may be necessary to review the contract of insurance to see if it is covered or not. At WJM we will be happy to offer appropriate advice in such cases.

If you would like further advice on this issue please contact:

• Andrew J P Wilson: ajpw@wjm.co.uk 

• Liam Entwistle: lae@wjm.co.uk

• Steven Docherty: sd@wjm.co.uk 

The information contained in this newsletter is for general guidance only and represents our understanding of relevant law and practice as at January 2021. Wright, Johnston & Mackenzie LLP cannot be held responsible for any action taken or not taken in reliance upon the contents. Specific advice should be taken on any individual matter. Transmissions to or from our email system and calls to or from our offices may be monitored and/or recorded for regulatory purposes. Authorised and regulated by the Financial Conduct Authority. Registered office: 302 St Vincent Street, Glasgow, G2 5RZ. A limited liability partnership registered in Scotland, number SO 300336.