Quantum questions to follow FCA test case

question marks

If the High Court rules that insurers are liable for their policyholders’ Covid-19 business interruption losses, then agreeing quantum for specific claims amid a myriad of coronavirus-related factors will be insurers’ next hurdle

This week, the FCA launched its unprecedented test case at the High Court, seeking to determine once and for all whether insurers are liable for Covid-19-related business interruption (BI) claims by analysing a cross section of 17 relevant policy wordings from eight different insurers.

As the legal arguments rumble on, many across the industry are already considering some of the case’s potential outcomes. One area that appears to raise more questions than answers is how quantum will be decided if the court rules that insurers must pay up for BI losses – in the same way that the pandemic has tested the question of coverage, claims values will be next under the microscope.

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