ARCHIVED: This Practice Note covers the first Instance decision of The Financial Conduct Authority v Arch Insurance. It has been archived and it is not maintained. For information concerning coronavirus (COVID-19) and business interruption insurance, including consideration of The Financial Conduct Authority v Arch Insurance, see Practice Note: Coronavirus (COVID-19)—FCA non-damage business interruption insurance test case [Archived].

STOP PRESS: The decision of The Financial Conduct Authority v Arch Insurance, was handed down on 15 January 2021. See: LNB News 15/01/2021 107.

Business interruption insurance has typically been sold as an extension to commercial property policies. Most business interruption cover requires that any such losses result from damage to insured property. There is, however, no standard form of business interruption insurance and some insurers offered policies with additional triggers for business interruption cover, such as denial of access or closure by a public authority.

Many businesses have sought to claim under their business interruption insurance for coronavirus (COVID-19) losses but few have been indemnified. Aggrieved policyholders were vocal and the mainstream