Business interruption – a new wave of claims?

Latest update from the forensic accounting team

In the recent judgement handed down by the High Court in the landmark test trial brought by the FCA against a number of larger insurers, the Court found in favour of the FCA on a number of key issues. It was held that the majority of policies would provide adequate cover for business interruption claims resulting from the pandemic – a welcomed decision by the many affected businesses.

Whilst the insurers argued that in reality there were multiple causes of loss, such as the virus itself, its impact on public confidence and economic activity and measures imposed by the UK Government, the Court held that the public and Government responses to the virus should be treated as one composite cause. This decision appears to have alleviated some of the hurdles businesses may have faced in bringing about a claim in the first instance.

Whilst this should be seen as positive result for businesses, the successful outcome of a claim for business interruption will be still be dependent on the specific wording of the individual policy held. With the expectation that insurers will appeal the decision, it is a critical time for those businesses affected to make a claim even if only to reach a settlement with the insurers.

business interruption

The Roffe Swayne forensic accounting team has deep and varied experience of business interruption claims, having acted for claimants, insurers and (unusually) as a single joint expert in relation to a claim brought by both claimant and insurer and being referred to the Insurance Ombudsman Service.

Our team is well placed to assist claimants in preparing robust quantum claims and insurers in reviewing and challenging these claims. Experience of working on both sides of the coin (and (once) in the middle) means we have a well-rounded viewpoint and can anticipate challenges from all angles.




For more information

If you would like to find out any further information or to discuss any potential claim one of the team would be happy to assist:

01483 416232