The Association of British Insurers has published a response to the recent judgement of the Supreme Court on the business interruption insurance test case.
ABI general director Huw Evans commented that ‘Insurers have supported this fast-track legal process every step of the way and we welcome the clarity that the judgment will bring to a number of complex issues.’
The ABI says it now expects the insurance industry will pay out more than £1.8bn in Covid-related claims across a range of products including BI.
Evans confirmed that customers whose claims have been affected by the test case will be contacted by their insurer to discuss what the judgment means for them.
All valid claims, the ABI says, will be settled as soon as possible. In many cases the process has already begun.
Evans said the ABI recognises that this has been a particularly difficult time for many small businesses and that it ‘regrets that the Covid-19 restrictions have led to disputes with some customers.’
With greater clarity emerging as the modest silver lining to the Covid cloud, Evans appeared to hint that there might be other potentially problematic devils lurking in the detail of BI policy wordings, waiting to be roused by some unforeseen future calamity.
‘We will continue to work together,’ he says, ‘to ensure customers have the clarity they need when it comes to what they can expect from their business insurance policies.’
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