Specialist late night leisure business insurance broker NDML said it has received the first offer of settlement from Hiscox for its clients involved in the Financial Conduct Authority’s (FCA) business interruption insurance test case.
The broker, which worked pro bono alongside the Night Time Industries Association (NTIA) and 11KBW’s Philip Kolvin QC, said its clients would receive 100% of any settlement agreed.
The group action action lawsuit saw the financial regulator and a group of insurance and reinsurance companies seek legal clarity on whether insurers were obligated to pay out on business interruption (BI) claims related to the pandemic.
The FCA’s case against eight insurers was launched in June 2020 with the aim of clarifying whether 21 policy wordings, affecting potentially 700 types of policies, 60 insurers, 370,000 policyholders and up to £7.4 billion in insurance claims, covered disruption and government-ordered closures to curb the virus.
In September, the High Court ruled that insurers Hiscox & QBE must pay out disputed business interruption policies to policy holders in the events industry. Last month the High Court upheld its judgement in favour of policyholders.
NTIA CEO Michael Kill said, “This has been a long journey which has seen many casualties, but we are pleased to finally announce that the FCA Supreme Court Case is starting to bear fruit for some of the hardest hit businesses during the Pandemic.
“We still have some way to go, and will be working with the FCA over the coming weeks to feedback on actions from other insurers which present policy wording that will have been included within the case. We are continuing to ask the FCA and the Supreme Court to ensure that the decision over wording has an absolute outcome, so that policyholders are clear on whether they are able to claim on there BI Insurance.”