FCA Test Case Statement
The Financial Conduct Authority (FCA) has sought legal clarity on the response of some business interruption insurance policies to COVID-19 by bringing a test case to the High Court.
The Financial Conduct Authority (FCA) has sought legal clarity on the response of some business interruption insurance policies to COVID-19 by bringing a test case to the High Court. Judgement was handed down on 15th September 2020.
Business interruption cover helps to protect businesses against loss of income as a result of not being able to operate fully after foreseeable events, such as floods, fires, malicious damage or storms.
Although it’s highly unlikely that a pandemic would intentionally be included in business interruption cover, COVID-19 has highlighted uncertainty around the validity of some insurers’ policy wording, resulting in the test case which considered 21 sample wordings from eight insurers.
The Court reached different conclusions in respect of each policy wording but found in favour of the FCA (who advanced the claim for policyholders) on some of the key issues meaning that some policyholders will now have their claims paid.
The judgement is complex and it will take time for those parties involved in the case to understand what it means and whether to appeal. The judgement will also have implications across the wider insurance and reinsurance markets, leading to amendments to policy wordings.
Cornish Mutual is not a party to the test case and the key points for determination by the Court are not relevant to our policies. The judgement will therefore not have a bearing for any existing or potential claims made by our Members for any COVID-19 related business interruption losses.
Looking to the future, our and other insurers’ attention will quickly turn to how to protect against another pandemic. However, the problem cannot be solved by the insurance industry alone. It is essential for the Government and the insurance industry to work together and provide a way for businesses to protect themselves against future pandemics.
Why women are needed if farming is to survive
Professor Sally Shortall has studied farming families around the world and her view remains the same. Women are vital for successful farming businesses but continue to be an under-valued resource.Read More
Inspire, network, grow
Struck by the lack of women working alongside her in the meat industry, Laura Ryan set up Meat Business Women in 2015. It is now a global phenomenon.Read More
How storytelling helps build industry resilience
Featuring in an episode of our Farming Focus podcast, BBC journalist Anna Jones and communications specialist Kendra Hall explain why storytelling and public relations is vital to the industry’s future.Read More
Four local students awarded Cornish Mutual Young Farmer Bursary
The winning agriculture students for the 2022 Young Farmer Bursaries have been chosen - find out more about this year's winners.Read More
Cornish Mutual tackles farm safety
Our new Health & Safety Service provides comprehensive support for managing your farm's health and safety requirements, through assessments by our specialist team, regular visits and expert advice. Click to find out more.Read More
Cornish Mutual invests in regenerative farming start-up
Our investment into Terrafarmer is another step in helping our Members prepare their farms for the future - read on for more information.Read More
Cornish Mutual is changing but staying true to its roots
Our services to help protect the farming community are expanding - read on to find out about new products and services that we are rolling out across the South West.Read More
Cornish Mutual Member Benefits
Cornish Mutual offers exclusive money-saving offers and discounts to Members, along with valuable support and advice on compliance, health & safety and more.Read More