The Supreme Court might order British insurers to compensate 370 000 companies. The latter may be required to pay 1.2 billion GBP (1.5 billion USD) for operating losses caused by business interruption due to the pandemic.
According to the plaintiffs, the insurance companies are trying to buy time to avoid reimbursing the affected companies, especially those in the hotel, restaurant, bar, nightclub, concert hall sector.
The UK's Financial Conduct Authority (FCA) had filed a complaint about the lack of clarity in the business interruption clauses of insurance contracts. Some insurers claim that the Covid-19 pandemic was not among the risks covered by their insurance policies.
The High Court and the Court of Appeal have already ruled in favour of insurers' obligation to compensate companies. Today, the final decision rests with the Supreme Court.
Read also | Business interruption: 1.5 billion USD to be borne by UK insurers [4]