Business interruption claims payouts near £1b

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Insurers have paid out almost £1 billion to cover business interruption claims arising from Covid-19 restrictions, according to the Financial Conduct Authority (FCA).

This figure includes interim and initial payments of £331,285,812 in total for 5,040 unsettled claims and £636,799,954 for 21,198 settled claims.

The FCA revealed in its letter to insurance company chief executives in January that it would collect and publish data on the progress of business interruption claims affected by the test case in which the Supreme Court largely backed policyholders denied payments following the outbreak of Covid-19 last year.

According to the latest figures, 26,238 business interruption policyholders out of 41,666 who had claims accepted have received at least an interim payment.

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Mark Dugdale is the editor of Claims Media. Mark welcomes articles, letters or feedback from readers and can be reached via mark.dugdale@barkerbrooks.co.uk