The Financial Conduct Authority (FCA) is inviting insurers and brokers aware of unresolved disputes over Covid-19 claims to participate in its test case, ahead of the expected High Court hearing in July.
The FCA confirmed earlier this month that it plans to seek a court declaration to resolve contractual uncertainty in business interruption insurance cover, as Covid-19 tests the terms of policies and insureds row with their insurers over unmet claims.
Insurers and brokers have until 20 May to engage with the FCA, via email@example.com. The regulator is keen to hear arguments on why cover should be available, details of policies that have allegedly failed to meet their responsibilities, and brief relevant facts of the cases.
Herbert Smith Freehills, led by Paul Lewis, has been instructed as the FCA’s legal counsel, along with an unnamed “external team of leading counsel highly experienced in insurance issues”. A dedicated webpage has been set up to provide updates on the test case.
The British Dental Association became the latest high-profile critic of insurers failing to meet claims for business interruption during the Covid-19 pandemic last week when the trade group appointed Brown Rudnick as its legal adviser.
Law firm Brown Rudnick will examine insurance policies affecting dental practices on behalf of the BDA’s 22,000 members, many of whom have organised on social media to gather relevant evidence on the full range of policies in the sector.