Connect with us

Hi, what are you looking for?

Investing

Small businesses’ fight for Covid insurance payouts reaches the Supreme Court

Supreme Court

The legal battle over business interruption policies that did not pay out to small firms during the pandemic will edge towards its climax today when appeals are heard by the Supreme Court.

Thousands of small businesses were thrown into turmoil when they tried to claim for financial losses suffered as a result of coronavirus restrictions but were rejected by their insurers.

This led to a number of high-profile disputes between businesses and insurance companies, with fears that some small firms will not survive the pandemic without payouts.

The Financial Conduct Authority sought to resolve the controversy by fast-tracking a test case to the High Court on behalf of policyholders. The City regulator estimated in the summer that as many as 370,000 businesses could be affected by the outcome.

In September the FCA said the High Court had “substantially found in favour” of arguments that the regulator had presented for policyholders. Yet most of the insurers involved in the case, the FCA and a group of policyholders are appealing against various aspects of the judgment. The Supreme Court is holding a four-day hearing to decide on these arguments.

When the Supreme Court comes back with its judgment at a later date it is expected to provide clarity on which policies should pay out. There are fears, however, that the resolution will come too late for some small businesses that will have already collapsed because of the pandemic.

Read more:
Small businesses’ fight for Covid insurance payouts reaches the Supreme Court

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

More than half of all Londoners have either started their own business or aspire to do so in 2023, compared to nearly a third...

Investing

The John Lewis Partnership has struck a £500m deal with the investment firm Abrdn to build 1,000 residential rental homes, redeveloping three sites already...

Investing

The first four scale-up visa licences have been approved by the Home Office three months after the scheme began, prompting lawyers to question the...

Investing

Barclays has been fined £8.4 million by the payments industry watchdog for failing to be transparent with retailers about the fees they were being...

Investing

Ministers have called on Britain’s biggest rail union to be “altruistic” and suspend strike action over Christmas and new year amid warnings that it...

Economy

Filipino writers, poets, and playwrights play an important role in countering and correcting falsehoods running rampant in an extremely polarized public sphere, said Dr....

You May Also Like

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.