Commenting about the FCA test case, Martin Chapman, Partner and Forensic Accountant at Azets, said
“As a result of today’s decision we can expect insurance companies to tighten future policy wording and increase premiums. This will no doubt make it more difficult for companies to get the business interruption insurance cover they want and increase the price of their insurance. The benefit of today’s decision is it gives many struggling companies a lifeline that could potentially see them through the current crisis, which will support jobs and investment. Optioning for a test case was the only real option to settle the matter. It saved business and the courts vast amounts of time, as well as unnecessary cost, by avoiding the need for individual litigation. It has greatly accelerated the whole process, meaning any pay-out is achieved while the insured remains a going concern”.