The High Court has today handed down judgment in the COVID-19 Business Interruption insurance test case. The judgment brings highly-anticipated ruling of cover under certain non-damage business interruption insurance extensions.

Lee Cohen, Hamilton Leigh’s Managing Director said “today’s welcomed judgment is a significant step in resolving the uncertainty being faced by many businesses. Today’s judgment removes a large number of barriers for those able to make successful claims, as well as clarifying those that may not be successful”.

The test case was not intended to encompass all possible disputes, but to resolve some key contractual uncertainties and ‘causation’ issues to provide clarity for policyholders and insurers. 

It is of course likely that the judgment will be appealed.  Any appeal however does not preclude businesses seeking to submit claims with their insurer before the outcome of any appeal is known.

Hamilton Leigh’s team of experts are currently examining the judgment and expect to publish a summary document which we will make available within the next few days.

In the meantime, should you wish to discuss your policy wording with Hamilton Leigh and the likelihood of being able to make a claim, please contact:

Lee Cohen

E: leecohen@hamiltonleigh.com

T: 07980 606886

Or

Paul Staines

E: paulstaines@hamiltonleigh.com

T: 07866 637989

A wide range of industry-specific risks contribute to the transport, haulage and warehousing sector possessing a workplace fatality rate totalling twice the all-industry average. Nevertheless, you shouldn’t let employee injury, ill health and fatal accidents become an accepted aspect of your workplace. Have a look at the following industry-specific statistics to find ways that your transport, haulage or warehousing firm can combat top health and safety concerns. For more information, contact Hamilton Leigh today.

At Hamilton Leigh, we dedicate a lot of time to supporting our clients with risk management to mitigate their exposures. With claims frequency and severity continuously growing, cyber threat should be equally considered when forming risk management practices and procedures for the business. 

We proactively speak with our clients about cyber insurance and the contribution it makes to their management of the risk through the invaluable service and guidance provided in the event of an incident. Insurers are making positive steps to incorporate more proactive elements into their product offering including accredited staff training courses and pre-breach assessments to assess areas of vulnerability. 

This infographic produced by the National Cyber Security Centre provides an excellent starting point of reference for businesses to formulate their cyber risk management plan. 

Should you have any questions about how we can support you please do get in touch with Jason Cohen @ Jasoncohen@hamiltonleigh.com 

We want to provide an update with regards to the FCA Business Interruption insurance test case and how this might affect our clients.

The coronavirus pandemic has shined a spotlight on the cover provided by non-damage Business Interruption insurance policies. The Financial Conduct Authority (FCA) announced its intention to seek clarity and certainty around this issue by holding a ‘test case’ action in the high court against what they consider to be a range of non-damage Business Interruption policy wordings that are representative of those used by the insurance industry. 

Hamilton Leigh is one of many insurance organisations to have voiced dissatisfaction with the way certain insurance companies conducted themselves in regard to Covid-19 Business Insurance claims. On 24^th April, we began lobbying government on behalf of our clients and proposed a Covid-19 Business Interruption Insurance Recovery Scheme to provide additional financial support to businesses in the UK.

The initiative has certainly gained traction and as a result of all the lobbying and complaints, the Government instructed the FCA to intervene. The FCA announced its intention to bring a test case in the High Court to challenge insurers’ decisions. The aim of this test case is for the court to determine the interpretation of certain policy provisions that include cover for Non-Damage (i.e. no physical damage to property) Business Interruption in relation to losses resulting from the COVID-19 pandemic. 

The FCA has decided to focus on 40 sample policy wordings from 8 insurance companies but this is a broad enough spectrum to include many other policy wordings. The regulator is only seeking to provide clarity for policyholders where the policy wording includes a Non-Damage Business Interruption clause, meaning that for the vast majority of businesses, the outcome of a claim under their policies will be unaffected by the test case. 

The High Court hearing is scheduled to commence 20^rd July 2020. All insurers will await the outcome of the High Court test case as this may affect their final claims decisions. We do not yet have confirmation as to when the final outcome will be announced. There is of course the possibility that any party may subsequently appeal the decision to a higher court. Unsurprisingly, the Government will also wait for the outcome of the test case before making any further decisions.

Nevertheless, following the outcome of the test case, we shall continue to lobby government as the outlook for businesses remains cautious for the rest of the year, given the ongoing uncertainty around the speed and sustainability of an immediate economic recovery.

We shall of course keep our clients fully updated with regards to the outcome. You can sign up for regular test case updates on the FCA website by clicking on the following link: www.fca.org.uk/firms/business-interruption-insurance

In the meantime, if we can be of any further assistance, please do not hesitate to contact your Hamilton Leigh client service executive. Alternatively, please click on the following link for regular updates on the FCA test case as well as a range of other subjects: https://hamiltonleigh.com/insights/