There is some potential good news for SMEs awaiting pay-outs under Business Interruption Insurance policies. Almost 400,000 businesses’ claims had been disputed by their insurers, which stated that the Coronavirus pandemic was not covered in the policies.
On 15 January 2021, a Supreme Court ruling has compelled insurers to pay out on these disputed claims. The Supreme Court agreed with a previous High Court ruling that backed policy-holders who claimed their Business Interruption policies did cover Coronavirus.
Whilst the latest Supreme Court ruling provides clarity for many claimants, it is unlikely to provide a clear-cut resolution for everyone. There are still a number of issues, which could give rise to further litigation, to be resolved; including whether insurers should accept that the disruption caused by the pandemic is one event or several.