English High Court Concludes FCA Business Interruption Test Case

4 August 2020
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Key takeaways:
  • The United Kingdom’s Financial Conduct Authority’s (the “FCA”) test case on business interruption insurance coverage finished its virtual hearing before the High Court last week.
  • A draft of the court’s judgment is expected to be provided to the parties in the middle of September.
  • If the High Court’s decision supports the FCA then insurers with business interruption exposure in the United Kingdom could experience a significant increase in pandemic-related losses.
  • The test case is expected to be persuasive for other common law jurisdictions currently considering business interruption cases of their own.