Today’s ruling had other bad news for insurers. Under the original judgement, cover for BI losses due to business closures during lockdown would have been based on a strict definition of lockdown, when closures were mandatory. The Court decided that this interpretation was too narrow and that cover should include closure instructions from a public authority, even if not backed by the force of law.
Customers who have made claims that are affected by the test case will be contacted by their insurer to discuss what the judgment means for their claim. All valid claims will be settled as soon as possible and in many cases the process of settling claims has begun, said UK’s Association of British Insurers.