The British Dental Association (BDA) has urged the Financial Conduct Authority (FCA) to consider the plight of dentists in its legal process to assess the validity of business interruption insurance policies.
As limited face-to-face dental care resumes in England, the BDA, which represents dental practices across the country, has made a formal request to the FCA to give specific consideration to the unique challenges facing the sector before the regulator takes forward its test case on insurers’ non-payment of business interruption claims.
The FCA stated on 15 April that most policies with basic cover would not cover coronavirus (Covid-19) but is now seeking a legal ruling on business interruption insurance in an attempt to provide greater clarity for businesses and insurers.
The BDA instructed law firm Brown Rudnick to review the wide range of business interruption policies held by its members and provide tailored legal advice for the dental sector.
In the open letter to the FCA, the BDA set out in detail the issues faced by the profession and asked the regulator to adequately reflect these in its own legal challenge.
The BDA is advising members to await the outcome of the FCA process before considering whether to pursue class action litigation, which appears premature at this stage and will not help to solve the cash crisis that members are facing now.
BDA chair Mick Armstrong said: “We have set out to get the best possible holistic advice on the dozens of policies serving the dental sector and will be sharing the lessons from that with our members. The FCA needs to appreciate the unique challenges faced by dental practices.”
“Lengthy litigation should remain a last resort, and won’t keep practices afloat today. Our aim is to give our members the best possible understanding of their legal position and the FCA the best understanding of the dental sector.”
“We want to