Covid insurance pay-outs a step closer
Insurance settlements should be a step closer for independent practitioners awaiting pay-outs for claims under business interruption policies caused by Covid-19.
Following a UK Supreme Court test case, insurers expect to pay over £1.8bn in Covid-19-related claims across a range of products, including business interruption policies.
The Association of British Insurers said customers who had made claims affected by the test case will be contacted by their insurer to discuss what the judgment means for their claim.
Its director general, Huw Evans, said: ‘All valid claims will be settled as soon as possible and, in many cases, the process of settling claims has begun.’
He added: ‘We recognise this has been a particularly difficult time for many small businesses and naturally regret the Covid-19 restrictions have led to disputes with some customers.
‘We will continue to work together as an industry to ensure customers have the clarity they need when it comes to what they can expect from their business insurance policies.’
The Supreme Court substantially allowed the Financial Conduct Authority’s (FCA) appeal on behalf of policyholders. It said many thousands of policyholders will now have their claims for coronavirus-related business interruption losses paid.
A spokesman said the FCA will work with insurers to ensure they now move quickly to pay claims that the judgment says should be paid, making interim payments wherever possible.