Home Business News More than £700m paid out by insurers for business interruption payouts

More than £700m paid out by insurers for business interruption payouts

by LLB Finance Reporter
12th May 21 2:13 pm

The Financial Conduct Authority (FCA) said that £701.3m has been paid by insurers though more than 17,000 separate claims over business interruption cover.

The Supreme Court ruled in January that insurers policies “will provide cover” for businesses that have been interrupted by the pandemic, which was a test court case.

Since the ruling the FCA called on insurance companies to “move quickly” to payout small businesses who were affected by the pandemic.

On Wednesday the FCA said that 3,632 unsettled claims have now been made, which are worth £268.2m, new filings say.

The watchdog also confirmed that 13,985 claims were finalised which resulted in £433.1m in payments made to businesses.

The FCA 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.”

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