Chloe Shakesby

Lockdown losses to be covered as UK Supreme Court rules in favour of small businesses

The UK Supreme Court has ruled today that thousands of businesses will be covered for lockdown losses.

In a case brought before the court by the Financial Conduct Authority, commercial insurers said that business interruption policies would not cover the problems small businesses faced after the first lockdown.

This has seen thousands of small businesses have their claims for compensation rejected.

However, the court ruled that payouts should be triggered as non-damage insurance policy clauses cover disease and denial of access to business premises.

Richard Leedham, a partner at law firm Mishcon de Reya, which represents the Hiscox Action Group, said: “The judgment should be a massive boost to all businesses reeling from a third lockdown who can now demand their claims are paid.

“The hope and expectation of our clients is that the claim adjustment process starts immediately and that insurers will not continue to cause further distress by further unnecessary delay.”

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