Insurers hand out more than £700m in business interruption payouts

Insurers have paid out more than £700 million to businesses after the landmark judgment over business interruption cover, according to new figures.

The Financial Conduct Authority (FCA) said that £701.3 million has been paid through more than 17,000 separate claims against insurers affected by the test court case.

In January, the Supreme Court ruled that insurers’ policies “will provide cover” for business interruption caused by the Covid-19 pandemic.

We’ve published our latest data from insurers on the progress of their business interruption insurance claims #FCAData https://t.co/23FvGv4AZk

— Financial Conduct Authority (@TheFCA) May 12, 2021

The FCA then called on the firms to “move quickly” to deliver payouts to small businesses affected.

It said on Wednesday that insurers have informed the watchdog that initial payments have been made for 3,632 unsettled claims.

These claims are worth £268.2 million, according to the new filings.

Meanwhile, 13,985 claims where claims have been finalised have resulted in £433.1 million in payments to businesses, the FCA said.

The regulator added: “We remind firms of the need to handle claims promptly and fairly and to provide reasonable guidance to help a policyholder to make a claim.

“Any business interruption policyholders who believe they may have a claim but have not yet submitted this to their insurer should do so as soon as possible in accordance with the policy document.”