FCA Test Case Notice
Business Interruption Policyholder Notice:
Please note that this notice may be relevant for anyone who purchased a policy underwritten by Everest Syndicate 2786 or Everest Insurance (Ireland) DAC which satisfies both of the following criteria:
- the policy provides non-damage business interruption cover; and
- the applicable law of the policy is the law of England & Wales, Scotland or Northern Ireland (“BI policies").
On 9 June 2020, the Financial Conduct Authority (the “FCA”) commenced a test case in the High Court in order to obtain determinations as to whether certain BI policies cover business interruption losses arising from the COVID-19 pandemic (the “Test Case”). During the Test Case, the High Court will consider a number of key points of construction and principle that appear to be in dispute in selected BI Policies.
The outcome of the Test Case (and any subsequent appeals) may affect claims made under BI Policies in respect of Covid-19 related losses, although it is premature to make any conclusions.
We will be contacting relevant policyholders who may be affected by the Test Case. There is further information and updates available (to which you may subscribe) on the FCA’s website. We also recommend that you visit the website of the Financial Ombudsman Service on which further material may be published in due course.
Should you have any queries, please contact us through either the contact details provided on your BI Policy, or:
Ashley Lawrence
EGM Head of Claims
40 Lime Street, London EC3M 5BS
Ashley.Lawrence@everestglobal.com