The Financial Conduct Authority (FCA) has published guidance to assist policyholders with proving the presence of Covid-19 when citing the disease on business interruption claims.
The guidance is based on the High Court’s judgment and declarations and additional statements from the Supreme Court in the business interruption test case that ended largely in favour of policyholders in January.
According to the FCA, the guidance sets out types of evidence and methodologies that policyholders may use in seeking to prove the presence of Covid-19 when making claims under business interruption policies, as well as the regulator’s expectations for insurers and insurance intermediaries.
“The final guidance is intended to: (i) provide clarity for all parties; (ii) help ensure that the process of proving the presence of Covid-19 is made as simple as possible for eligible policyholders; and (iii) enable policyholders to receive claim payments as early as possible.”
The FCA is also developing a Covid-19 calculator to assist policyholders with working out two types of evidence set out in the guidance. This can then be used to identify whether there was at least one case of Covid-19 in the relevant policy area at any given date.